Results of a TSP participant survey conducted last fall suggest several potential features to add to the program, according to a summary presented to a recent meeting of the TSP board.
For example, it said that results showing significant numbers of participants are not confident about their retirement security and do not know how much they will need to live on during retirement suggests that the TSP should “Further develop tools and calculators which help participants envision and estimate retirement needs, define appropriate savings goals and strategies, and gauge their progress toward meeting goals.”
It similarly raised a concern about the fifth who have little or no emergency savings, saying that “from experience (government shutdowns /Covid) we know participants access TSP savings in during times of financial distress” and recommending that the program “investigate the possibility of additional education about the benefits of saving for the unexpected.”
It also noted that in response to a question asking what features they would find most useful, the top responses involved online tools on how to withdraw from a TSP account to make funds last through retirement, that estimate the amount an individual should be saving, and that provide retirement income estimates based on all potential retirement income sources, not just the TSP.
That suggest the need for the TSP to “further develop tools and calculators which help participants envision and estimate retirement needs, define appropriate savings goals and strategies, and gauge their progress toward meeting goals,” it said.