How often do TSP annuity rates change?
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TSP annuity rates are set monthly by MetLife, the TSP's annuity provider. The interest rate factor is updated at the beginning of each month and announced on TSP.gov. Rates typically change by 0.1–0.3% per month depending on Treasury yield movements. Higher rates mean higher monthly payments if you elect an annuity that month.
Are commercial annuities better than TSP annuities?
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Often yes — commercial SPIAs frequently pay 5–15% more per month than TSP annuities because they compete across dozens of A-rated insurers. However, TSP annuities offer specific features (COLA, joint survivor, 10-year certain) that some commercial products make more complex. Use our calculator with your specific balance, age, and gender to see the real-dollar difference for your situation.
What is a MYGA and how does it compare to a SPIA?
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A Multi-Year Guaranteed Annuity (MYGA) locks in a guaranteed interest rate for a set term (3, 5, 7, or 10 years) — think CD-equivalent but tax-deferred. A Single Premium Immediate Annuity (SPIA) starts paying income immediately for life. MYGAs are for accumulation; SPIAs are for income. At retirement, many people roll a MYGA into a SPIA after the term ends.
What happens to my TSP if I don't buy an annuity?
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If you don't elect a TSP annuity, your balance stays in TSP or can be rolled over to an IRA. You take withdrawals via RMDs (required minimum distributions) starting at age 73, or set up installment payments. This gives you more flexibility and growth potential, but no lifetime income guarantee. The TSP Rollover Analyzer tool on RetireStack compares these scenarios.
Is the TSP annuity reversible?
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No. Once you elect a TSP annuity, the decision is permanent. MetLife purchases an annuity contract with your balance and begins monthly payments. You cannot change the option, get a lump sum back, or change providers. This is the most important reason to model your options carefully before electing — commercial annuities offer the same lifetime guarantee with more shopping flexibility before you commit.