The Thrift Savings Plan--the defined-contribution retirement plan for federal employees--is the largest retirement plan in the United States. It has rock-bottom fees and a simple investment lineup, which is great for participants.
Yet as good as it is, the TSP has also historically had an unusually conservative glide path for its target-date funds, which could hurt participants who expect their retirement portfolio allocations to look like typical retirement plans' allocations. Recently the TSP Lifecycle funds, as its target-date funds are called, have started to shift into a much more typical glide path. Participants in the largest defined-contribution plan in the U.S. need to understand what this means for them.