Domestic TSP funds falter to close out 2025

The federal government’s 401(k)-style retirement savings program for the second straight month posted lackluster returns, with just one portfolio exceeding 1% in returns in December.

The Thrift Savings Plan’s international (I) fund led the way, growing 3.04% last month. Since the beginning of the year, the I Fund has increased 32.45% in value.

But the common stocks of the C Fund managed just a 0.06% improvement last month, bringing its 2025 growth to 17.85%. And the small- and mid-size businesses of the S Fund lost 0.53%. Last year, the S Fund gained 11.38%.

The fixed income (F) fund lost 0.26% in December, bringing its 2025 performance down to 7.21%. And the G Fund, which is made up of government securities, grew at its statutorily mandated rate of 0.35% last month. Since January, the G Fund has increased 4.44%.

On the bright side, each of the TSP’s lifecycle (L) funds, which shift toward more conservative investments as participants get closer to retirement, each ended 2025 in the black. The L Income Fund, designed for people who have already begun making withdrawals, gained 0.51%; L 2030, 0.72%; L 2035, 0.76%; L 2040, 0.80%; L 2045, 0.83%; L 2050, 0.86%; L 2055, 1.01%; L 2060, 1.01%; L 2065, 1.01%; L 2070, 1.01%; and L 2075, 1.01%.

Over the course of 2025, the L Income Fund has grown 9.36%; L 2030, 15.17%; L 2035, 16.27%; L 2040, 17.31%; L 2045, 18.20%; L 2050, 19.07%; L 2055, 21.87%; L 2060, 21.88%; L 2065, 21.88%; and L 2070, 21.89%. The L 2075 Fund will begin posting year-to-date data next month.