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In an earlier article we looked at some of the results of the Thrift Board’s recently released statistics on plan participation as it applies to FERS civilian employees.  This article looks at the statistics on investment allocation.  Neither CSRS participants nor BRS participants were included.  The numbers/percentages you see below are as on December 31, 2022.

It’s no surprise that the statistics show that allocations to the G Fund increase with age.  The amount allocated to the G Fund is 5% for those who are under the age of 30, 16.4% for those between 30 and 40, 20.5% for those between 40 and 50, 30.1% for those between 50 and 60, 40.5% for those between 60 and 70, and 47.2% for those 70 and over.  These percentages do not include L Fund investments that are in the G Fund.

It’s interesting that higher paid employees do not have as high a percentage of their investments in the G fund.  For those in the bottom 60% of salary, the G Fund allocation is between 35% and 40%; while those in the top 40% allocate less than 30% of their investments to G.

The L Funds were introduced in 2005, and it shouldn’t surprise anyone that younger employees participate at a higher rate in the L Funds than do older ones.  In fact, since 2015, the default automatic enrollment for new hires has been the “age-appropriate” L Fund.  A full 66.5% of the investments of those under 30 is in one or more L Funds, while those 70 and over allocate only 13.2% of their investments to L.

When it comes to salary, the lowest quintile allocates 35.6% to the L Funds.  The four higher quintiles allocate between 21% (3rd quintile) and 26.6% (4th quintile).

Within the L Funds, the younger participants congregate in the funds that are furthest out, and over 50% of those age 70 and older are in the L Income Fund.  Almost 1/3 of participants have their money invested solely in one or more L Funds.  Though the TSP says that “…the participant only needs to invest in one L Fund to achieve diversification among the core funds.”, many participants have money in multiple funds, along with the L Funds.

Did you know that, according to Credit Karma®, 27% of Baby Boomers have absolutely nothing saved for their retirement?


John Grobe, President of Federal Career Experts, is an expert in the area of federal employee retirement and benefits. This expertise comes from his 26 year federal career in which he managed the retirement program in a 3,500-employee office of a large federal agency.

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