The most recent edition of the Jobs Rated Almanac -- which rates jobs by salary, intellectual stimulation, opportunity for advancement, hours and job-related stress -- had "actuary" in second place behind "biologist." In fact, the vast majority of job surveys also have actuarial careers at or near the top.
One of the biggest attractions is salary -- few career choices for mathematics majors will yield a larger pay than actuarial work. According to the Society of Actuaries, an associate-level actuary earns more than an average MBA graduate.
Salaries do vary widely from industry to industry, or even company to company. The SOA estimates most Fellows earn between $150,000 and $250,000 annually. Yet a Fellow working for a major financial services firm could earn $500,000 or more each year in base pay plus salary, while the same Fellow working for a public pension fund or the government can expect $125,000. Granted, the Fellow in financial services will have much longer hours and a lot more job-related stress & but it's there for the taking.
That's the beauty of a career in the actuarial field -- the ability to balance life and work, and achieve a level of both that suits you. For those who are ambitious and can handle stress, the rewards are very high. And though the rewards aren't as high for those who prefer a less-stressful workplace, they're still well above average compared to those of most careers.
Actuaries working for major insurers can expect to start in the $60,000 range. In 10 years, with the completion of a full slate of actuarial exams and Fellowship, that can top $300,000 or more. By the time you retire, that can reach $500,000 or more a year, especially if you take a management or executive track. Those few who can make it to the upper echelons of the corporate world can pull in multimillion-dollar salaries, plus sizeable bonuses.
Smaller insurers, of course, won't pay as much. Even so, $175,000 after a decade of hard work and completion of all exams isn't unheard of. You may have to move on to another firm to reach the top, but those who stay on can expect to retire with a salary of $350,000 or more.
Government actuaries and those employed by public pension funds tend to make less and are governed by civil service law. Most federal government actuaries can expect to start in the $50,000 to $60,000 range. Those with some experience can quickly top $100,000 or more per year. In 10 to 15 years, it's closer to $175,000 a year. The government isn't as obsessed with SOA/CAS exam completion, either -- you won't have to climb all the way up to Fellowship to land a very comfortable job, and the work can be both broad and challenging.
Consulting firms vary widely in salaries. A small firm can experience feast-or-famine times that tend to keep salaries small and bonuses always in flux from small to amazing. Larger firms, such as Deloitte & Touche or Buck Consultants, have steady salaries, regular bonuses and generally pay more. A top consulting firm can have actuaries earning more than $100,000 in three or four years, and rival the topmost insurance companies through your career.
Actuaries in the broader financial services industry tend to work the most hours and have the most stress, but earn the best salaries. A Wall Street investment bank or hedge fund will start most entry-level people at $80,000 or better, including base salary and annual bonuses. That can rise sharply over time, depending on job performance and the company's fortunes. In 10 to 15 years, salary/bonus combinations of $750,000 can be achieved, with the bulk of that coming in a year-end bonus. Most actuaries involved with major financial services companies can retire as millionaires, and likely retire early as well. However, you're also buying into the stress and performance-based culture of Wall Street -- it's not for the faint of heart.
Pension funds and endowments, on the other hand, don't pay nearly as much, but the hours and stresses are far less. Expect to earn $60,000 or so to start, with salaries topping out at about $250,000 to $300,000 in 15 to 20 years.
Finally, actuaries working for corporate America can see the widest swing in their potential earning power. Actuaries starting out and helping to manage a company's insurance policies can earn just $40,000 a year. Those in growing industries who are responsible for mitigating business risk across an entire business can earn salaries rivaling those on Wall Street.
Of course, as actuaries well know, there are a lot of factors to consider when building a career. Some actuaries are very business-oriented and can thrive under the pressure-cooker of Wall Street. Others may be more introverted and prefer to simply let their work speak for itself. Either way, actuarial science provides plenty of options and a great deal of choice in balancing lifestyles.
Actuarial careers are also generally quite secure. Demand for actuaries remains strong and, despite the falloff in pension work, is only expected to grow in the coming years. The job requires a deep knowledge of finance and mathematics, and the certification process is strenuous. If you can manage that, you won't have many problems finding and keeping a job.
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