Later this year the 2025 fund will have the same profile as the Income fund and will be merged into it, while a 2075 fund will be launched. Image: dee karen/Shutterstock.com
By: FEDweek StaffThe large company stock C fund led TSP returns for calendar year 2024, up 24.96 percent, followed by the small company stock S fund, up 16.93 percent, while the international stock I fund gained 4.27 percent for the year.
The government securities G fund gained 4.4 percent and the bond F fund rose 1.33 percent for the year.
Year-end figures for the lifecycle L funds were: Income, 7.37; 2025, 8.28; 2030, 11.52; 2035, 12.18; 2040, 12.85; 2045, 13.42; 2050, 14.02; 2055, 2060, 2065, 16.28. The figures reflect the heavier weighting of the stock-based funds in an L fund’s portfolio as the target date goes farther into the future.
No full-year return was posted for the 2070 fund, which was launched in late July 2024; its performance essentially matches that of the 2055-2065 funds with only minor differences in their allocations. The only other significant change in the funds during 2024 was the switch of the I fund to track a broader index that reflects stock markets of more countries and more companies within those markets.
Later this year the 2025 fund will have the same profile as the Income fund and will be merged into it, while a 2075 fund will be launched.
All funds except the ever-gaining G fund posted losses in December, cutting into the higher figures they had posted through November. The S fund last month dropped 7.05 percent, the I fund 2.83 percent, the C fund 2.39 percent, and the F fund 1.71 percent. That translated into monthly losses in the L funds ranging from 0.66 to 3.14 percent.
Federal retirees have an advantage over most other folks when it comes to dealing with longevity risk:
Unlike most retirees, who have only one source of guaranteed lifetime income (Social Security), federal retirees have two (both Social Security and FERS). We also have the TSP, which is not guaranteed to last for our lifetime, and this is where longevity risk would come in for us, writes John Grobe
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See also,
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