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TSP Lifecycle Funds: L 2075 Fund Launches, L 2025 Fund Merges
Significant changes are coming to the Thrift Savings Plan (TSP) Lifecycle (L) Fund lineup. On June 30,2025,the TSP will introduce the L 2075 Fund,tailored for federal employees planning to start withdrawals in 2073 or later. Simultaneously, the L 2025 Fund will be retired and integrated into the L Income Fund.
L 2075 Fund: A New Option for Younger Investors
The federal Retirement Thrift Investment Board (FRTIB) describes the L 2075 Fund as an aggressive investment vehicle ideally suited for younger investors, specifically those born after 2009. This fund aims to maximize growth potential over a long investment horizon.
Did you Know? The TSP manages over $700 billion in assets for federal employees and uniformed services members, making it one of the largest defined contribution plans in the world [1].
L 2025 Fund retirement and Merger
June 27, 2025, marked the final day for the L 2025 Fund. After the markets closed that day, it was automatically transitioned into the L Income Fund. TSP participants holding the L 2025 Fund did not need to take any action, as the transition was seamless.
This transition mirrors the previous mergers of the L 2010 and L 2020 Funds into the L Income Fund upon reaching their respective target dates.
Understanding TSP Lifecycle Funds
Lifecycle Funds (L Funds) are target-date retirement funds designed to assist federal employees and members of the uniformed services in making investment decisions based on their anticipated retirement timeline. Each fund comprises a diversified mix of the five core TSP funds: G, F, C, S, and I.The asset allocation is automatically adjusted over time to align with the fund’s target date.
Pro tip: Regularly review your TSP investment strategy to ensure it aligns with your financial goals and risk tolerance. Consider consulting a financial advisor for personalized guidance.
The “Glide Path” Explained
As the target date nears, the fund gradually shifts from a more aggressive, growth-oriented mix to a more conservative, income-focused allocation. This strategy, known as a “glide path,” helps to mitigate risk as retirement approaches. According to Investopedia, a glide path is a formula that dictates the asset allocation mix of a target-date fund based on the years remaining until the target date [2].
The glide path for the L Funds is automatically adjusted quarterly to maintain the desired asset allocation.
Current TSP Lifecycle Fund options
Following the addition of the L 2075 Fund and the retirement of the L 2025 Fund, the TSP now offers the following Lifecycle Funds:
- L Income (for those already withdrawing)
- L 2030
- L 2035
- L 2040
- L 2045
- L 2050
- L 2055
- L 2060
- L 2065
- L 2070
- L 2075 (new as of June 30, 2025)
each fund is designed to align with a specific retirement horizon, offering a tailored investment approach.
How to Utilize L Funds Effectively
L Funds provide an automated solution for TSP participants seeking a diversified portfolio that evolves with their retirement timeline. The TSP website emphasizes that these funds are designed to allow investors to allocate their entire portfolio to a single L Fund, aiming for the best expected return relative to their risk tolerance.
Here’s a general approach to using L Funds:
