The Thrift Savings Plan’s S Fund grew 7.21% last month. Image generated by OpenAI
TSP funds rebound following months of losses
Only one portfolio in the federal government’s 401(k)-style retirement savings program finished May in the red.
Following months of disappointing returns, the federal government’s 401(k)-style retirement savings plan returned to positive territory in May, with all but one portfolio finishing the month in the black.
The Thrift Savings Plan’s S Fund, made up of small- and mid-size businesses, led the way, growing 7.21% last month. Despite those gains, the S Fund remains 3.13% in the red so far this year. And the common stocks of the C Fund gained 6.29% in May, bringing its 2025 performance up to 1.05%.
The international investments of the I Fund increased 4.97% in value, bringing its gains this year to a TSP-best 14.42%. And the G Fund, which is made up of government securities, grew by its statutorily mandated rate of 0.36%. So far this year, the G Fund has increased 1.85%.
The fixed income (F) fund was the only TSP portfolio to lose value last month, falling 0.71%. Since January, the F Fund has grown 2.44%.
Each of the TSP’s lifecycle (L) funds, which shift toward more conservative investments as participants get closer to retirement, finished May in the black. The L Income Fund, for people who have already begun making withdrawals, grew 1.79%; L 2025, 1.87%; L 2030, 3.65%; L 2035, 3.97%; L 2040, 4.29%; L 2045, 4.57%; L 2050, 4.86%; L 2055, 5.90%; L 2060, 5.90%; L 2065, 5.90%; and L 2070, 5.90%.
Since January, the L Income Fund has increased 2.94%; L 2025, 2.95%; L 2030, 4.05%; L 2035, 4.23%; L 2040, 4.40%; L 2045, 4.53%; L 2050, 4.66%; L 2055, 5.03%; L 2060, 5.03%; L 2065, 5.03%; and L 2070, 5.05%.