So you love maths and want a rewarding and lucrative career? Have you considered pursuing a career in actuary? If yes, then getting to know the average Actuary salary in the US is a great place to begin.
The world keeps changing at a fast rapid rate, and every day, more risk management professionals are needed to help businesses navigate through these changes. For this reason, actuaries have been in high demand, and the average salary of an actuary goes high as the demand goes.
If you are uncertain of what career path to choose where you can make a difference, become an Actuary. In this article, we will help you understand:
- Who is an Actuary?
- What does an Actuary do?
- Why you should consider becoming an actuary
- Requirements to become an actuary
- How to become an actuary
- Actuary job outlook and work environment
- Actuary salary in the US and everything else you need to know.
Continue to read to find out more.
What is an Actuary?
Basically, an Actuary specializes in solving problems and measuring the probabilities as well as the risks of future events, using their strategic thinking and mathematical skills.
They specialize in helping businesses and their clients predict the financial impacts of these measured probabilities and risks.
Over the years, businesses, as well as the government, have relied on the skills and expertise of Actuaries and analysts to help predict and strategize for the future.
Who is an Actuary?
Generally, an Actuary is a business expert who specializes in utilizing their problem solving, mathematical and analytical skills to help measure and manage risks and uncertainties between businesses and their clients as well as in the government.
Basically, they help businesses and organizations to manage and solve complex and sophisticated financial issues.
While Actuaries have varying academic backgrounds, which include:
- Accounting and finance
- Actuarial science,
They are all focused on their interest in maths and statistics.
What Do Actuaries Do?
Basically, Actuaries play significant roles in businesses and companies by employing their problem-solving and statistical analysis skills to analyze and determine if and when a company should issue an insurance policy as well as what the premium for the policy has to be.
They usually examine big data and specialize in risk management in the course of uncertainties when it comes to the exposure of the organization’s financial risk.
Duties of an Actuary
The responsibilities of an Actuary include:
Producing charts, tables as well as reports to explain their calculations
Analyzing the financial costs of risks and uncertainties in businesses or companies.
Assessing the risks of potential events such as death, natural disaster, sickness and developing the policies to help minimize the risks
Compile, organize, and manage statistical data as well as other relevant information
Explaining and simplifying their findings, as well as tier proposals to company or business executives, shareholders, government officials, and so on.
Why Should I Become an Actuary?
There are so many reasons to become an Actuary. The following are the top reasons on our list:
It is a top-ranked job
According to this report, Actuary has constantly ranked as one of the top jobs in the US.
While they are mostly less visible, they are valued and revered by people and businesses who know what they are and do.
Basically, Actuaries are considered to be on the upper scale where lawyers, doctors, and all other top careers are placed. Also, it is an international career.
Guaranteed job security
Unlike some other career fields, Actuaries are confident in uncertain times. This means that the job is and has always been in high demand.
If you desire a fulfilling career that allows you to balance work and life, you should consider becoming an Actuary. An Actuary job career helps you to maintain a low-stress work-life balance.
There is no back-breaking labor or tasks required in the field.
Your work varies
Basically, actuaries do not constantly sit behind the desk, punching words and numbers on the keyboard. While this may be your ideal career if you are a less sociable person, it is equally for very sociable individuals as some actuaries work in the field.
Some of them work as Data Analysts, and the rest work as reporters for management, report writers and liaising with clients, and delivering presentations to trustees.
A career in Actuary is both financially and practically rewarding. Following the historical steady employment to rise in salaries as well as the variance in the duties of an Actuary, you are sure to have a fulfilling career.
The list of the benefits and reasons to become an Actuary is endless. Assess your skills and what you want out of life, as well as your financial expectations and if this career fits all your expectations, jump right in!
There is no reason not to want to be an Actuary.
Actuary Career Job Outlook
According to these statistics, Actuaries had some of the biggest employment as they held up to 27,000 jobs in 2020.
Basically, actuaries work on teams that usually include managers and professionals in other fields such as finance, underwriting, and accounting.
Also, the same report reveals that job employment for Actuaries is likely to grow 24% from 8% from 2020 to 2030.
Generally, this is faster and higher than all other average occupations in the US.
Where Do Actuaries Work?
Some of the top sectors Actuaries work include (but are not limited to):
- Finance and insurance
- Professional, technical and scientific services
- Management of companies and enterprises
- Self-employed workers.
How Do I Become an Actuary?
In order for you to become an Actuary, there are so many requirements you need to meet as well as steps you need to take. Let’s discuss them below.
Get your Bachelor’s Degree
One of the best places to begin if you want to become an Actuary is by obtaining a Bachelor’s degree. It could be in an Actuarial program; if not, you can major in Actuarial science.
However, if your university does not have those programs, you could major in a course relating to mathematics, statistics, finance, or economics.
Also, computer science is important too, as well as taking classes in advanced calculus and algebra.
Take part in extracurricular activities
The right amount of extra-curricular activities will help you demonstrate you possess the ability to balance an intense workload.
This will play a significant role when you search for an internship or even land your first job in the field.
Acquire technical computer skills
As mentioned earlier, taking computer classes is crucial in becoming an Actuary. This is to help you get well-versed in the various software and tools you will need to use for your work.
You could take courses on programs such as SQL programming skills, Excel, or any other relevant technical computer skills.
Successfully Pass 2 Actuarial Exams Prior to Graduating
To become an Actuary, there are several exams you will need to pass, and the two exams you will be required to take after college are:
- Probability Exam, otherwise known as Exam P
- Financial Mathematics Exam, otherwise known as Exam FM
They are beginner exams for Actuaries and last for a duration of three hours each.
Get an Actuarial Internship
Before you graduate and become a full professional Actuary, you must have one internship or more under your belt after you have completed the aforementioned exams.
To acquire an internship in a team of established actuaries, you must have an impressive resume or the required relevant courses, extracurricular activities, and successful completion of exams.
Basically, your internships will help you gain the work experiences you need for your first job. Also, they will help you build connections as well as help you develop an understanding of what your daily roles as an Actuary will entail.
We recommend you get your internships in two or more different Actuary industries. This will give you a clear picture of what industry you would want to specialize in after graduation.
Land your first entry-level Actuarial job
After graduation, your next bet would be to make your way into the job market and land your first entry-level job as an Actuary.
Choose Between SOA and CAS
While here, you will need to decide what field you want to work in as an Actuary, as this will determine the association you will need to join.
The two associations are:
The difference between the two associations is the field in which the individuals are employed. The SOA is focused on health insurance, retirement as well as life insurance.
On the other hand, CAS is geared towards property and casualty insurance. This is also known as P&C.
Complete a VEE-Approved Courses for Requirement
You will e required to take courses on Validation by Educational Experience (VEE) topics. You are required to take courses on topics like accounting and finance, economics, and mathematical statistics.
However, in addition to this, you will be required to have successfully completed two exams before you request VEE credit.
Continue Your Exams
As mentioned earlier, the Actuary career is one that will require you to constantly write exams. For instance, you will need to take on both long-term and short-term Actuarial mathematics to become a member of the SOA.
Basically, if you successfully complete these exams as well as some courses or modules, you could become a Fellow of the Society of Actuaries (FSA).
What are the Skill Requirements to Become an Actuary?
The following are the skill requirements to become an Actuary:
- Analytics skills
- Mathematics and statistical skills
- Problem-solving skills
- Effective communication (oral and written)
- Technical computer skills
- Interpersonal skills
- Great business sense
- Finance, accounting, and economics skills
- Strong formulating spreadsheets, database manipulation, statistical analysis programs, and programming language skills
What is the Actuary Salary in the US?
This section discusses the average Actuary salary in the US from various verified sources.
According to Money.usnews $111,030, an average Actuary salary in the US was $111,030 in 2020. However, the lowest-paid Actuary salary in the US in the same year was $83,550.
According to Indeed.com, the average Actuary salary is $117,010.
And according to Beanactuary, an Actuary’s salary in the US is between $150,000 to $250,000 per year.
FAQs Actuary Salary in the US
Actuaries play significant roles in businesses and companies by employing their problem-solving and statistical analysis skills to analyze and determine if and when a company should issue an insurance policy and what the premium for the policy has to be.
The responsibilities of an Actuary include:
1. Producing charts, tables as well as reports to explain their calculations
2. Analyzing the financial costs of risks and uncertainties in businesses or companies.
3. Assessing the risks of potential events such as death, natural disaster, sickness and developing the policies to help minimize the risks
4. Compile, organize and manage statistical data as well as other relevant information
5. Explaining and simplifying their findings as well as tier proposals to company or business executives, shareholders, government officials, and so on.
Firstly, it takes about five years to complete and obtain a bachelor’s degree: another seven years to successfully complete your Actuarial exams.
The following are the two professional bodies that offer certification programs for actuaries:
1. Society of Actuaries (SOA)
2. Casual Actuarial Society (CAS)
Yes, they are.
According to the Bureau of Labour Statistics and other verified sources, job employment for Actuaries is likely to grow up to 24 percent from 8 percent between 2012 to 2030.
An actuary career is one of the most fulfilling and financially rewarding careers you could ever get into. If you meet all the requirements, you could consider pursuing an actuary career.
We hope this article will help you and as well as answer all the questions you may have about getting into this career.
All the best!
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