Tell the AI your TSP balance, age, and whether you're married. It'll show you estimated monthly payments for both options — in plain English, with real numbers.
📊 Your Side-by-Side Comparison Is Ready
Based on your inputs, here are estimated monthly payments for both options. See the scenarios table below.
Estimated monthly payments for a $500,000 annuity. Actual rates vary by gender, provider, and market conditions. Verify before deciding.
| Scenario ($500K, Age 62) | TSP MetLife | Commercial (top-rated) | Monthly Difference | 20-Year Difference |
|---|---|---|---|---|
|
Single Life — Level Payments
No survivor benefit; stops at death
|
~$2,650/mo | ~$3,000–$3,200/mo | +$350–$550/mo | +$84K–$132K |
|
Single Life — Cash Refund
Heirs get unused premium if early death
|
~$2,560/mo | ~$2,850–$3,050/mo | +$290–$490/mo | +$70K–$118K |
|
Joint Life — 50% Survivor
Spouse receives 50% of payment after your death
|
~$2,350/mo | ~$2,600–$2,800/mo | +$250–$450/mo | +$60K–$108K |
|
Joint Life — 100% Survivor
Spouse receives full payment after your death
|
~$2,200/mo | ~$2,400–$2,600/mo | +$200–$400/mo | +$48K–$96K |
|
Inflation-Indexed (COLA)
Payments increase annually with inflation
|
~$2,250/mo initial | ~$2,500–$2,700/mo initial | +$250–$450/mo | Growing gap |
Estimates for a 62-year-old male, $500,000 premium. Female rates are typically lower due to longer life expectancy. TSP rates use OPM's April 2026 interest rate (~2.25%). Commercial rates reflect current best-available quotes from A+ or better rated providers. These are illustrations only — not guaranteed rates.
The answer depends on how you value simplicity vs. income maximization.
- Simplicity matters more than maximizing income
- You don't want to navigate the rollover process
- You want OPM and federal oversight
- You need inflation-indexed payments (TSP offers this directly)
- Your TSP balance is relatively small (under $100K)
- You're uncomfortable vetting private insurance companies
- Maximizing monthly income is the priority
- You're comfortable with the IRA rollover process
- You want to shop multiple providers for best rates
- You need a survivor percentage other than 50% or 100%
- You want to annuitize only part of your TSP
- Your balance is large enough that extra income is meaningful ($200K+)
This Decision is Irrevocable
Once you annuitize — TSP or commercial — you can't reverse it. A ChFEBC or fee-only CFP can run your exact numbers before you decide. RetireStack can connect you.
SEEK EXPERT ADVICE. The annuity comparison data on this page is for educational illustration only and does not constitute financial advice. Monthly payment estimates are approximations based on 2026 market conditions and will vary by gender, exact age, selected options, and provider. Both the TSP annuity and commercial SPIA purchases are irrevocable decisions with permanent consequences for your retirement income. Before annuitizing any portion of your TSP, consult a licensed ChFEBC (Chartered Federal Employee Benefits Consultant), a fee-only CERTIFIED FINANCIAL PLANNER™, or an OPM-certified retirement counselor. RetireStack is not a registered investment advisor.