![]()
A majority of Thrift Savings Plan (TSP) participants—nearly 87 percent—said they are satisfied with their plan, according to a new survey by the Federal Retirement Thrift Investment Board.
The satisfaction rate is down 2 percent compared with the last survey from 2017. The timing of the new survey, which ran from March through May, may account for the slight decline as the stock market plunged during these early days of the pandemic.
The survey also found that participants who contribute 5 percent or more of their wages—accounting for nearly 50 percent of respondents—reported overall higher satisfaction rates. According to the survey, inertia, not affordability, drives low contribution rate for lower earners, suggesting that lower-income participants are less likely to opt-out when the default deferral rate for new hires increases to 5 percent in October.
Eighty-eight percent of participants report satisfaction with the new withdrawal options, up 4 percent from 2017. In 2019, the TSP implemented a number of new withdrawal options, allowing participants to make multiple post-separation partial withdrawals and allowing annuitants to change the amount and frequency of payments at any time.
A second survey is slated for later this year to gauge retirement preparedness. To learn more about TSP plans, contribution options and more, click here.