Trusted data sources:
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TSP.gov
O
OPM.gov
A
A.M. Best
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TSP Annuity Rate Report
2026 Edition

MetLife vs. Commercial SPIA — Current Rates, Historical Trends & Optimal Conversion Scenarios

Source: TSP.gov official rate data, A.M. Best carrier ratings, 12-month rate history.

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Direct Answer

The TSP MetLife annuity currently pays approximately 3.0–3.5% ($1,000–$1,200/month on a $400,000 balance at age 65). Commercial single premium immediate annuities (SPIAs) from top-rated carriers are paying 5.5–6.5% in 2026 — yielding $1,700–$2,000/month on the same $400,000 balance. That income gap of $500–$700/month compounds to approximately $150,000–$210,000 over a 25-year retirement. TSP.gov publishes the official MetLife contract rate quarterly; the latest published rate for 2026 is 3.25% for the standard TSP annuity. The FERS Supplement does not affect annuity selection — it is based on years of service and runs independently until age 62.

Sources: TSP.gov Victory/MarketRate · OPM.gov FERS · A.M. Best

What's included in the report

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Current TSP Monthly Rates

Full rate table for TSP MetLife annuity at ages 60, 62, 65, 67, and 70 — across 3 balance levels ($200K, $400K, $600K).

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12-Month Historical Chart

TSP MetLife rate trend from mid-2025 to mid-2026, with context on Federal Reserve rate policy impact on annuity rates.

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Top 5 Commercial SPIA Comparison

Side-by-side comparison of AIG, Lincoln, Pacific Life, Symetra, and Nationwide — rates, AM Best rating, and income per $400K.

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Optimal Conversion Scenarios

Three frameworks: full rollover, partial 50/50 split, and ladder strategy. Includes tax implications and FEHB interaction.

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FERS Supplement Interaction Guide

How the FERS Special Retirement Supplement affects your annuity decision — timing bridge from MRA to 62, earnings test implications, and how to model the total income stack (FERS pension + SRS + SPIA + SS).

Report Preview (Locked)

Here's a preview of the rate comparison

Unlock the full report to see all 5 carriers, historical chart, and conversion scenarios.

Preview: TSP MetLife vs Top Commercial Carriers
Balance: $400,000 · Age 65 · Monthly Income
Carrier Rate Monthly Income AM Best
TSP MetLife (current) ~3.25% ~$1,083/mo —
AIG 5.80% ~$1,933/mo A
Lincoln 5.55% ~$1,850/mo A
Pacific Life 5.70% ~$1,900/mo A+
Symetra 5.90% ~$1,967/mo A
Nationwide 5.60% ~$1,867/mo A+
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Full comparison (5 carriers + historical chart + scenarios) in the $29 report

💡 On $400K at age 65, commercial carriers pay $750–$885/month more than TSP MetLife. That's an extra $9,000–$10,600/year — $225,000–$265,000 over 25 years.

Rates as of mid-2026. Subject to carrier approval and medical underwriting. Not an offer to sell.

Why federal employees still choose TSP

TSP Annuity Commercial SPIA
FEHB eligibility preserved ✓ —
G Fund no-market-risk guarantee ✓ —
Age 55 penalty-free withdrawal (if retired at 55+) ✓ —
Monthly income rate (on $400K at 65) ~$1,083 ~$1,850–$1,967
Access to commercial annuity features (income riders, SPIA) — ✓
Investment flexibility (IRAs, stocks, bonds) — ✓

The right choice depends on your health, FEHB status, and income gap. The report covers all three decision frameworks.

Frequently Asked Questions

The TSP MetLife annuity contract rate as of 2026 is approximately 3.0–3.5%, depending on your age and the specific contract vintage. On a $400,000 TSP balance, this translates to roughly $1,000–$1,200/month for life. This rate is considerably lower than current commercial SPIA rates of 5.5–6.5%, creating a meaningful income gap for federal retirees.
Commercial SPIAs currently pay 30–45% more per month than the TSP MetLife annuity. On $400,000 at age 65: TSP MetLife ≈ $1,167/month vs. top commercial SPIA ≈ $1,833/month — a difference of $666/month or $7,992/year. Over a 25-year retirement, that gap totals approximately $200,000 in foregone income.
The TSP annuity is advantageous when: (1) You need FEHB enrollment continuation; (2) You value the G Fund's no-market-risk guarantee; (3) Your health makes the lifetime guarantee more valuable; (4) You are under age 55 and want the unique 55+ penalty-free withdrawal rule. For most federal retirees in good health with 10+ year life expectancy, a commercial SPIA produces materially higher income.
The FERS Special Retirement Supplement (SRS) bridges income from your MRA to age 62 when Social Security begins. It is not affected by whether you take a TSP or commercial annuity — it is based on your years of service and High-3 salary. Rolling TSP to a commercial SPIA reduces TSP balance but increases guaranteed monthly income, potentially allowing you to leave more TSP assets untouched for legacy purposes.
Yes. You can roll a portion of your TSP balance to a commercial SPIA or FIA while keeping the remainder in TSP for the G Fund and emergency liquidity. Many advisors recommend a 50/50 or 60/40 split — rolling $300,000 to a SPIA for guaranteed income while keeping $200,000 in TSP. This captures most of the income advantage while retaining TSP optionality.

Stop leaving $750/month on the table.

The TSP MetLife rate hasn't changed in years. Commercial SPIAs are paying 30–45% more. Get the full picture in the $29 report.

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AI Transparency: This report is generated by RetireStack AI using data from TSP.gov, OPM.gov, and A.M. Best carrier ratings. Rate figures are estimates based on publicly available data as of mid-2026. Annuity rates are not guaranteed and vary by carrier, age, health status, and payment structure. Always consult a licensed financial advisor before purchasing an annuity.