TSP Funds Struggle as 2025 Ends
The Thrift Savings Plan (TSP), a 401(k)-style retirement savings program for federal employees, has reported modest performance for December. For the second consecutive month, the returns have fallen flat, with only the international (I) fund showing significant gains.
TSP Fund Performance in December 2025
In December, the I Fund was the standout, achieving a return of 3.04%. Since the start of 2025, its total growth has reached an impressive 32.45%. In contrast, the common stocks within the C Fund improved marginally by only 0.06%, marking a year-to-date growth of 17.85%.
Impact on Other Funds
- The S Fund, which focuses on small- and mid-sized businesses, saw a decline of 0.53% last month. It had a year-end growth of 11.38% in 2025.
- The fixed income (F) fund experienced a loss of 0.26% in December, resulting in a total performance of 7.21% for the year.
- The government securities-based G Fund grew by 0.35%, accumulating a 2025 increase of 4.44%.
Despite some struggles, the lifecycle (L) funds have shown solid performance. These funds adjust towards conservative investments as participants approach retirement. Each L fund finished December in positive territory.
L Fund Growth Overview
| Fund | December Return | 2025 Growth |
|---|---|---|
| L Income | 0.51% | 9.36% |
| L 2030 | 0.72% | 15.17% |
| L 2035 | 0.76% | 16.27% |
| L 2040 | 0.80% | 17.31% |
| L 2045 | 0.83% | 18.20% |
| L 2050 | 0.86% | 19.07% |
| L 2055 | 1.01% | 21.87% |
| L 2060 | 1.01% | 21.88% |
| L 2065 | 1.01% | 21.88% |
| L 2070 | 1.01% | 21.89% |
| L 2075 | 1.01% | Data Available Next Month |
Overall, while December was challenging for most TSP funds, the L funds reveal stable performance as they cater to participants nearing retirement. The management of these lifecycle funds continues to emphasize prudent growth strategies for a secure financial future.
