Why the G Fund Is Costing Your TSP Real Growth

Is the TSP G Fund actually the safe choice for retirement savings? Over the 10 years ending July 2026, the G Fund averaged 2.92% a year. Prices rose about 36% from 2015 to 2025. $100,000 × 1.0292¹⁰ = about $133,300 Keeping the same buying power over that decade would have taken about $135,900. The balance grew every year and still bought less at the end. Moving to the G Fund right after a loss adds a second cost. Selling stock fund shares at the lower price makes the loss permanent, and a fund that drops 20% has to gain 25% just to get back to even. Money sitting in the G Fund earns its usual rate while the stock funds recover without it.