The IRS officially raised the TSP contribution limit from $23,500 to $24,500 for 2026, creating additional tax-advantaged space for aggressive savers. For those under the Blended Retirement System (BRS), you should contribute at least 5% of your base pay to receive the full Department of War match. While you automatically receive a 1% contribution after 60 days of service, the full 5% matching capability begins after two years. Check your contribution percentage in myPay today; if you are contributing anything less than 5%, you are leaving a portion of your military compensation unclaimed. TSP savings can have a significant impact on retirement outcomes, as shown in the graphic below:
Visualizing the Path: From E-1 to TSP Millionaire
The model assumes an enlistment age of 18 with a 20-year career trajectory progressing from E-1 to E-8. Calculations are based on a consistent 5% personal contribution from base pay throughout the entire service period (20 years). Employer contributions follow the Blended Retirement System (BRS) rules. Base pay projections utilize the 2025 pay table adjusted by a 19-year historical average pay raise of 2.755% annually. Investment growth is calculated using “Since Inception” historical rates of return for the respective funds, with interest compounded annually on the total balance plus new contributions.
Becoming a TSP millionaire is rarely the result of luck; it is the result of compound interest applied over a career. As the visual above demonstrates, an E-1 joining the military today has a viable path to a seven-figure retirement simply by leveraging the 5% match and historical market returns. By starting at age 18 and consistently investing just 5% of base pay through a 20-year career (E-1 to E-8), the compounding effect turns modest monthly contributions into substantial long-term wealth. This model relies on the historical strength of the TSP funds such as the C Fund, which has a lifetime return of 11.36%, and the S Fund, with a lifetime return of 9.47%. Time is your greatest asset, and the math favors those who start early.
Others have done it, so can you!
The Federal Retirement Thrift Investment Board’s TSP Millionaires Report (October 2025) highlights a growing cohort of participants who have crossed the million-dollar threshold. These high-net-worth accounts are not anomalies; they represent service members for and federal employees who have the financial discipline of long-term investing. As of Oct. 1st, 2025, 189,836 participants in the Thrift Savings Plan have accounts totaling over $1 million. Exercise your financial fitness and start 2026 with the right investing habits!
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Military Money Matters 