On June 30, 2025, the Thrift Savings Plan (TSP) introduced a brand-new option for investors: the L 2075 Fund.
This new Lifecycle Fund was created with a very specific purpose, to serve younger federal employees who expect to begin withdrawing from their TSP around the year 2073 or later. If you’re early in your career and planning for a long retirement horizon, this fund may be exactly what you’ve been waiting for.
Let’s walk through what the L 2075 Fund is, how it works, and whether it might fit your long-term investment strategy.
What Is the L 2075 Fund?
The L 2075 Fund is part of the TSP’s Lifecycle (L) Fund family. These target-date funds automatically adjust their investment mix over time, aligning with the year you expect to start withdrawing your retirement savings.
Here’s how it works:
- The fund starts off with a very aggressive investment mix, primarily focused on growth through stock-based funds.
- Over time, the asset allocation gradually shifts to more conservative investments like bonds and government securities.
- By mid-2075, the fund will merge into the L Income Fund, which is focused on preserving capital and generating income.
It’s a hands-off, long-term approach built for federal employees who want their portfolio to evolve automatically as they approach retirement.
Why Was the L 2075 Fund Introduced?
Before this launch, the most forward-looking Lifecycle option was the L 2065 Fund, that left a noticeable gap for federal employees in their 20s or early 30s, who plan to retire after age 65 possibly around 2073–2080.
To keep pace with changing retirement timelines, TSP retired the L 2025 Fund and introduced the L 2075 Fund as part of its June 30, 2025 update. This provides a more appropriate long-term investment strategy for younger federal workers who are just beginning to build their retirement savings.
Also Read: IRA Investment Picks That Resemble TSP Saving Options
Accurate Allocation Breakdown of the L 2075 Fund
At launch, the L 2075 Fund is heavily weighted toward equities (95%), with only minimal exposure to bonds and government securities.
As of June 30, 2025, the fund’s asset allocation is approximately as follows:
| TSP Core Fund | Asset Type | Allocation (%) |
|---|---|---|
| C Fund | U.S. Large-Cap Stocks | 51.5% |
| I Fund | International Stocks | 34.7% |
| S Fund | U.S. Small/Mid-Cap Stocks | 12.9% |
| F Fund | Bonds | 0.6% |
| G Fund | Government Securities | 0.4% |
This aggressive mix is maintained until October 2047, at which point the fund begins to gradually shift toward a more conservative balance.
Who Should Consider the L 2075 Fund?
This fund may be a strong fit for:
- Federal employees at the start of their careers, typically in their 20s or early 30s
- Individuals planning to retire around 2073 or later
- Participants looking for automatic, long-term investment management
- Those who are currently in the L 2065 Fund but have a longer timeline
If you’re comfortable with stock market fluctuations and want to let your money grow for several decades before withdrawing, this fund was designed with you in mind.
L 2075 vs. Other Lifecycle Funds
See how the L 2075 Fund compares to other TSP Lifecycle options:
| Lifecycle Fund | Target Retirement | Approx. Equity Allocation (2025) |
|---|---|---|
| L Income | Already retired | 20% |
| L 2035 | 10 years away | 60% |
| L 2050 | 25 years away | 80% |
| L 2065 | 40 years away | 90% |
| L 2075 | 50 years away | 95% |
The further away the retirement date, the more aggressive the fund which is why the L 2075 has the highest stock allocation of them all.
Also Read: Congress Makes Big Changes To Update Health Savings Accounts
How to Shift Your TSP Investments Into the L 2075 Fund
If you’d like to update your TSP investment mix to include the L 2075 Fund, here’s how:
- Log in to your TSP account at “tsp.gov”
- Select “Change Investments”
- Choose to update your current balance, future contributions, or both
- Select L 2075 from the list and assign your preferred percentage
- Submit and confirm your changes
Pro tip: Changes submitted before 12:00 p.m. ET on business days are typically processed the same day.
Pros and Cons to Consider
Pros:
- Designed specifically for younger investors with longer timelines
- Automatically rebalances and adjusts over time
- Diversified across multiple asset classes
- Low-cost structure compared to most private-sector target-date funds
Cons:
- Very aggressive early on, not ideal for conservative investors
- Not a great match if you plan to retire before 2073
- Asset mix isn’t customizable beyond the fund’s preset glide path
Also Read: Maximize FEGLI Before You Retire from Federal Service
Final Thoughts
The L 2075 Fund is a welcome addition to the TSP lineup and it reflects a meaningful shift toward serving the next generation of federal employees. It gives younger participants the ability to invest more precisely in line with their actual retirement goals, without the need for constant oversight or rebalancing.
If you’re starting your career or advising someone who is, this fund could provide a simple, effective way to grow retirement savings over the long term.
As with any investment choice, it’s important to make sure it fits your timeline, comfort level, and overall retirement plan.
