Actuary Salary, Outlook & Career Guide

What Does an Actuary Do?

Actuaries use mathematics, statistics, and financial theory to analyze the economic costs of risk and uncertainty. They estimate the probability and likely economic cost of events such as death, sickness, accidents, or natural disasters, and help businesses develop policies that minimize these costs. Their work is essential to the insurance industry, where they design and test insurance policies, calculate cash reserves, and ensure companies can pay future claims. Actuaries produce charts, tables, and reports to explain their calculations and often work on teams with accountants, financial analysts, and data scientists.

Education & Requirements

Typical Education: Bachelor's degree in actuarial science, mathematics, statistics, or related analytical field
Certifications: Multiple actuarial exams required for associate and fellowship certification (may take 7+ years); pension actuaries need enrollment certification
Key Skills: Advanced mathematics, statistics, analytical thinking, computer programming, communication, problem-solving
Experience: Entry-level positions require passing 1-2 actuarial exams; long-term on-the-job training as trainees

Salary Information

According to the Bureau of Labor Statistics (May 2024 data):

Median Annual Salary: $125,770 per year ($60.47 per hour)
Entry-Level (10th percentile): $75,240
Experienced (90th percentile): $206,430
Top-Paying Industries: Management of companies ($133,030), Finance and insurance ($126,830)
Total Employment: 33,600 jobs nationwide

Job Outlook & Growth

Employment of actuaries is projected to grow 22% from 2024 to 2034, much faster than the average for all occupations. About 2,400 openings are projected each year. Actuaries will be needed to develop, price, and evaluate insurance products and calculate the costs of new risks. More actuaries will be needed for enterprise risk management, helping companies adjust business strategies across all operations. Insurance companies will need actuaries to analyze large amounts of data from consumers to develop new products, set competitive prices, and improve projections. Health insurance companies will require actuaries to evaluate effects of changing healthcare regulations and expand into new markets.

How to Break Into This Field

Education: Earn a bachelor's degree in actuarial science, mathematics, statistics, or business. Complete required coursework in economics, statistics, and corporate finance.
Entry-Level Roles: Start as actuarial trainee or assistant. Begin with basic tasks under experienced mentors and progressively take on complex research and analysis.
Build Skills: Master programming languages, statistical software, spreadsheets, and databases. Pass at least 1-2 certification exams before graduation.
Network: Join actuarial professional societies, attend conferences, participate in internships during college to understand different practice areas (health, life, pension, casualty).
Apply Strategically: Target insurance companies (78% of jobs), consulting firms, government agencies. Employers typically support certification costs and study time.

Career Path & Advancement

Actuaries start as trainees and advance based on exam progression and job performance. Those achieving fellowship status often supervise others and advise senior management. Advancement depends on the number of actuarial exams passed - fellowship certification typically takes several additional years beyond associate level. Actuaries with broad knowledge of risk management may become top executives like chief risk officers or chief financial officers. Some pursue specialized paths in life/annuities, group/health benefits, retirement benefits, quantitative finance, or corporate finance. Actuaries may also transition to become medical school students, lawyers (patent attorneys), or earn MBAs to move into managerial positions.

Pros & Cons

Pros

Very high salary with excellent earning potential
Exceptional job growth (22%, much faster than average)
Intellectually challenging and prestigious work
Employers support exam costs and study time
Strong job security in essential industry
Clear advancement path through certification

Cons

Lengthy certification process (up to 7 years for associate level)
Requires extensive study while working full-time
Highly competitive exam system
May work more than 40 hours per week
Requires continuous learning and staying current
High-pressure work environment

Related Careers

If you're interested in Actuary, you might also consider:

Data Scientist - Analyze data and use statistical models across industries
Financial Analyst - Guide investment decisions for businesses and individuals
Mathematician/Statistician - Apply computational techniques to solve problems
Economist - Research monetary and fiscal policy and analyze economic data
Operations Research Analyst - Use mathematics and logic to solve complex issues

Data Source

All salary and employment data sourced from the U.S. Bureau of Labor Statistics (BLS)Occupational Outlook Handbook. Data reflects May 2024 estimates and 2024-2034 projections.

Actuary Career Guide