What is the primary purpose of the Thrift Savings Plan in the blended retirement system?

The Thrift Savings Plan (TSP) serves as a supplemental retirement account within the blended retirement system. Its primary purpose is to enable service members to save and invest their own funds for retirement on top of the pension benefits they receive. The TSP allows participants to contribute a percentage of their pay, which can grow tax-deferred until withdrawal. This additional savings option is crucial for building a more comprehensive retirement portfolio, ensuring that individuals have access to funds that can provide greater financial security during retirement.

Other options do not align with the primary function of the TSP. Immediate income post-retirement, funding educational benefits, or managing healthcare expenses are not the main focuses of the TSP. Instead, the TSP complements other retirement benefits and helps individuals prepare more thoroughly for their post-service financial needs.