Military retirees in Oceanside often have a Thrift Savings Plan balance and a decision to make about turning it into income. We compare annuity options, including the TSP’s own annuity and private annuities, so you can see how they differ.
Tell us about your savings and income goals, and a licensed agent will follow up by phone or video.
By submitting, you agree a licensed insurance agent may contact you about annuity options.
The TSP offers its own annuity, and private annuities are another route. Here’s how the options compare.
| Option | How it works | What to weigh |
|---|---|---|
| TSP life annuity | Purchased through the TSP from its chosen insurer, currently MetLife | Options like joint life or cash refund lower the monthly payment |
| Rollover to a private annuity | TSP funds move to an IRA annuity from an insurer you choose | Product features, fees, and surrender periods vary |
| Keep funds in the TSP | Take installments or partial withdrawals | Flexibility, but no lifetime income promise |
We explain how the TSP annuity works before comparing private options.
We compare joint life options that keep income going for a surviving spouse.
We look at how annuity income would fit with your military retired pay.
Yes. The TSP offers a life annuity purchased from an insurer the TSP selects, currently MetLife. You can choose features like a joint life annuity that continues payments to a surviving annuitant, a cash refund feature, or ten-year certain payments. Each added feature lowers the monthly payment.
A private annuity bought with a rollover to an IRA lets you choose the insurer and product type, such as a fixed, fixed indexed, or income annuity, and compare features across companies. The TSP annuity offers a single insurer with set options. Comparing payout rates, features, and fees side by side shows how they differ for you.
No. Military retired pay is a separate benefit, and buying an annuity with your savings doesn’t change it. The question is how annuity income would work alongside retired pay and any VA disability compensation to cover your expenses, which is where we focus the comparison.
A joint life annuity pays income as long as either you or your joint annuitant, often a spouse, is alive. Payments are lower than a single life annuity because they may last longer. For married retirees, it’s one way to keep income going for a surviving spouse.
A direct rollover from the TSP to an IRA annuity generally isn’t taxed when done correctly. Withdrawals before age 59 and a half can carry a federal penalty, with some exceptions for separation from service. Annuities may also have surrender charges. A tax professional can confirm how the rules apply to you.
Tell us about your savings and income goals, and a licensed agent will lay out options by phone or video.
Annuities are insurance products, not bank deposits, and are not FDIC insured. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurer. Guarantee association coverage is subject to limits and conditions. Surrender charges may apply. We do not provide tax or legal advice.
