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Actuaries are essential in evaluating financial risks for businesses, especially within the insurance and finance industries. Their proficiency in mathematics, statistics, and financial theory enables them to assist organizations in future planning. If you’re interested in how much actuaries earn at various stages of their careers, including how much does actuary make, this article details their salaries, from entry-level roles to senior positions.
Key Takeaways
- Entry-level actuaries typically earn around $68,700 per year.
- Mid-level actuaries with 3-6 years of experience make approximately $85,200 annually.
- Senior-level actuaries can expect to earn about $117,000 each year.
- Location significantly impacts actuary salaries, with New York being the highest-paying state.
- Advanced degrees and certifications can substantially increase an actuary’s earning potential.
Understanding Actuary Salaries by Experience Level
Entry-Level Actuary Salaries
Starting out, entry-level actuaries can expect to earn a base salary ranging from $71,901 to $88,701, with an average of $80,401. When including annual incentives, the total cash compensation can range from $74,401 to $93,101, averaging $83,701. Entry-level positions provide a solid foundation for future growth.
Mid-Level Actuary Salaries
As actuaries gain experience, their salaries increase significantly. Mid-level actuaries with around 3-6 years of experience typically earn an average salary of $85,200 per year. This stage often sees the most substantial salary jump, with professionals moving from early career to mid-career roles.
Senior-Level Actuary Salaries
Senior-level actuaries with 7-12 years of experience enjoy even higher salaries. On average, they earn about $117,000 annually. Senior actuaries often hold more responsibilities and leadership roles, reflected in their compensation. The highest-paid 25% of actuaries can make up to $155,670, while the lowest-paid 25% earn around $84,800.
The biggest salary jump for actuaries happens between early career and mid-career positions, when salaries grow by an average of $29,000.
Impact of Location on Actuary Salaries
Location significantly influences an actuary’s salary. Geographic location is one of the biggest drivers of actuary pay in the United States. States with significant insurance hubs and consulting firms tend to offer higher salaries. For example, an actuary working in Michigan earns an average annual salary of $88,440, while those in North Carolina make around $129,350 a year. Cities like Atlanta, Georgia, and Boston, Massachusetts, offer some of the highest actuary salaries in the United States. However, metropolitan areas often have a higher cost of living.
Highest Paying States for Actuaries
The top-paying states for actuaries can vary, but as of 2021, Georgia, New Hampshire, and New York are among the highest. Here’s a quick look at the average annual salaries in these states:
| State | Average Annual Salary |
|---|---|
| Georgia | $235,310 |
| New Hampshire | $150,200 |
| New York | $147,420 |
| Connecticut | $140,130 |
| Vermont | $139,670 |
Top Cities for Actuary Salaries
Certain metropolitan areas also stand out for their high actuary salaries. For instance, the Atlanta-Sandy Springs-Roswell area in Georgia offers an impressive average annual salary of $245,520. Other top-paying cities include:
| Metropolitan Area | Average Annual Salary |
|---|---|
| Atlanta-Sandy Springs-Roswell, GA | $245,520 |
| New York-Newark-Jersey City, NY-NJ-PA | $144,550 |
| Springfield, MA-CT | $144,320 |
| Hartford-West Hartford-East Hartford, CT | $143,490 |
| Boston-Cambridge-Nashua, MA-NH | $139,510 |
Urban vs. Rural Salary Differences
Urban areas generally offer higher salaries for actuaries than rural areas. This is often due to the concentration of jobs in the finance and insurance sectors in cities. However, it’s important to consider the cost of living, typically higher in urban areas. For example, while an actuary in a city might earn more, the increased living expenses can offset the higher salary.
The DW Simpson salary survey offers valuable insights into salary benchmarks, trends, and other factors influencing compensation within the actuarial field.
Educational Influence on Actuary Salaries
Bachelor’s Degree Impact
Ideally, pursue at least a bachelor’s degree, as many employers now expect this level of education. As of July 2022, Payscale reports that actuaries with bachelor’s degrees average about $71,000 a year. Several factors can influence an actuary’s salary, including education, certification level, industry, sector, location, and years of experience.
Master’s Degree and Beyond
Some actuaries choose to earn a master’s degree as well. A master’s degree in actuarial science increases the average actuary salary by $3,000 per year, according to data from Payscale. An MBA brings the average up by $22,000. Advanced education can open doors to higher-paying roles and advanced career opportunities.
Certifications and Their Financial Benefits
Certification plays a significant role in how much an actuary can make. Once certified, actuaries can earn well over $90,000 per year. Expected certification levels include:
- Associate of the Society of Actuaries (ASA) – $120,000 avg. salary
- Fellowship of the Society of Actuaries (FSA) – $175,000 avg. salary
- Associate of the Casualty Actuarial Society (ACAS) – $115,000 avg. salary
- Fellowship of the Casualty Actuarial Society (FCAS) – $210,000 avg. salary
Achieving FSA or FCAS certification requires passing a rigorous series of exams, which can take 5-7 years. However, the payoff is worth it—fellow designations unlock senior actuary positions with high earning potential.
Industry-Specific Actuary Salaries
Actuaries can work in various industries, each offering different salary ranges. Understanding these differences can help you decide which path to pursue in your actuarial career.
Insurance Industry Salaries
The insurance industry employs the most actuaries, with an average annual salary of $119,860. This sector includes roles in insurance carriers and agencies, where actuaries help design policies and assess risk.
Consulting Firm Salaries
Actuaries in consulting firms earn an average of $115,540 per year. These professionals advise businesses on managing financial risk and often work on various projects, offering a dynamic work environment.
Healthcare Sector Salaries
Actuaries make around $96,920 annually in the healthcare sector. They play a crucial role in designing health insurance plans and predicting healthcare costs, making their work vital for providers and patients.
Company-Specific Actuary Salaries
Regarding actuary salaries, your company can make a significant difference. Top companies like PayPal and Google offer some of the highest wages in the industry. For instance, actuaries at PayPal earn an average of $137,675 annually, while those at Google make around $136,065 per year. These figures are well above the national average for actuaries, which is $88,255 annually.
Top Paying Companies
Here’s a quick look at some of the top-paying companies for actuaries:
| Rank | Company | Average Salary | Hourly Rate |
|---|---|---|---|
| 1 | PayPal | $137,675 | $66.19 |
| 2 | $136,065 | $65.42 | |
| 3 | McKinsey & Company Inc | $134,487 | $64.66 |
| 4 | Uber Technologies | $126,946 | $61.03 |
| 5 | AIG | $121,421 | $58.38 |
Salary Comparison Among Leading Firms
Comparing salaries among leading firms can help you understand how much actuarial consultants make and where you might want to focus your job search. For example, McKinsey & Company Inc. offers competitive salaries, with actuaries earning an average of $134,487 annually. This is closely followed by Uber Technologies, where actuaries make around $126,946 per year.
Benefits and Bonuses
In addition to base salaries, many companies offer attractive benefits and bonuses. These include performance-based bonuses, health insurance, retirement plans, and stock options. For instance, AIG actuaries earn a substantial salary and enjoy comprehensive benefits packages that add significant value to their overall compensation.
Understanding the salary landscape across different companies can help you make informed career decisions and negotiate better pay packages. Actuaries are generally earning between $131,127.91 and $370,258.24 based on overall experience and industry, with an estimated total pay of $217,630.60 with top firms.
In summary, while the base salary is crucial, don’t overlook the additional benefits and bonuses that can significantly enhance your total compensation package.
Trends in Actuary Salaries Over Time
Historical Salary Data
Over the past decade, the average salary for actuaries has increased by $15,874. In 2014, actuaries earned an average of $72,381 annually. Today, they make $88,255 per year, a 10% increase in pay over ten years. Actuaries generally earn between $131,127.91 and $370,258.24 based on overall experience and industry.
Future Salary Projections
Looking ahead, actuary salaries are expected to continue rising. The demand for actuaries is growing, likely to drive higher wages. Companies are willing to pay more for skilled professionals who can analyze financial risks and uncertainties.
Factors Driving Salary Changes
Several factors contribute to changes in actuary salaries. Economic conditions, industry demand, and technological advancements all play a role. Additionally, the increasing complexity of financial products and regulations requires actuaries to have more specialized knowledge and skills.
The actuary profession is evolving, and with it, the compensation trends. Staying updated with industry changes is crucial for maximizing earning potential.
Gender and Demographic Influences on Actuary Salaries
Gender Pay Gap in Actuarial Science
The gender pay gap is a significant issue in many professions, including actuarial science. Women often earn less than their male counterparts, even with similar qualifications and experience. This disparity can be attributed to various factors, such as career interruptions and part-time work, which are more common among women. Additionally, women may face challenges negotiating salaries and promotions, further widening the pay gap.
Demographic Trends
Demographic trends also play a crucial role in determining actuary salaries. For instance, racial and ethnic minority groups may experience potential disadvantages in terms of pay and career advancement. These disparities can stem from systemic biases and a lack of representation in higher-paying roles. Improving diversity and inclusion within the field is essential to address these issues and ensure fair compensation for all actuaries.
Diversity and Inclusion Impact
Fostering diversity and inclusion within the actuarial profession can positively impact salaries. Companies prioritizing diverse hiring practices and creating inclusive work environments often see better employee satisfaction and retention rates. This, in turn, can lead to more equitable pay structures and opportunities for career growth. By focusing on these areas, the actuarial field can work towards reducing pay disparities and promoting a more inclusive workforce.
Negotiating Your Actuary Salary
Before entering salary negotiations, it’s crucial to do your homework. Research your area’s average salary for actuaries and compare it with national averages. Always let the employer make the first offer; this gives you a baseline from which to work. Make sure to highlight the unique skills and experiences that make you a valuable asset to the company.
When negotiating, focus on several key points:
- Base Salary: Know the industry standards and be ready to justify your request with data.
- Bonuses and Incentives: Ask about performance-based bonuses and other incentives that can boost your overall compensation.
- Benefits: Don’t overlook the value of health insurance, retirement plans, and other benefits.
- Work-Life Balance: Discuss flexible working hours or remote work options if these are important to you.
If you have multiple job offers, use them to your advantage. Politely inform each potential employer that you are considering other offers. This can sometimes lead to better terms as companies compete for top talent. Remember, the goal is to find the best overall package, not just the highest salary.
Negotiating your salary can be daunting, but being well-prepared and confident can make a significant difference. Always approach the conversation professionally and be ready to discuss your value in detail.
Additional Compensation and Benefits for Actuaries
Actuaries often receive more than just their base salary. Many companies offer bonuses and incentives to reward exceptional performance. These can significantly boost overall earnings. For instance, Nationwide’s average actuary base salary is $131k per year, with an additional pay of $21k per year, which could include cash bonuses, stock options, or commissions.
Bonuses and Incentives
Actuaries often receive more than just their base salary. Many companies offer bonuses and incentives to reward exceptional performance. These can significantly boost overall earnings. For instance, Nationwide’s average actuary base salary is $131k per year, with an additional pay of $21k per year, which could include cash bonuses, stock options, or commissions.
Health and Retirement Benefits
Health and retirement benefits are another critical part of an actuary’s compensation package. Companies typically provide comprehensive health insurance plans, including medical, dental, and vision coverage. Retirement benefits often include 401(k) plans with employer-matching contributions, which help actuaries save for their future.
Work-Life Balance Perks
Work-life balance is crucial for many professionals, and actuaries are no exception. Employers may offer flexible working hours, remote work options, and generous paid time off. These perks help actuaries balance their professional and personal lives, contributing to overall job satisfaction.
Job Outlook and Market Demand for Actuaries
The job outlook for actuaries is highly positive. The U.S. Bureau of Labor Statistics projects employment for actuaries to grow by 18% from 2020 to 2030, which is much faster than the average for all occupations. This translates to roughly 5,500 additional actuary jobs during this period. As companies develop new products and services, high demand is expected in the insurance industry. Additionally, the healthcare sector will rely on actuaries to manage risk and costs associated with insurance programs.
Projected Job Growth
The employment outlook for actuaries remains strong, with high demand across various sectors. The U.S. Bureau of Labor Statistics projects a better-than-average percentage rate of job growth of 23% from 2023 to 2030. The need for expertise in risk management and financial planning drives this growth.
Emerging Opportunities
New opportunities are emerging in fields like data science and predictive analytics. Actuaries with skills in these areas will find themselves in high demand. The talent pipeline for actuaries remains narrow, with only around 5,000 students graduating each year with degrees geared toward actuarial science. This high attrition rate limits the number of candidates able to fill open positions.
Skills in High Demand
Actuaries with strong analytical skills, proficiency in statistical software, and the ability to communicate complex information clearly will be particularly sought after. As the field evolves, actuaries who can adapt to new technologies and methodologies will have a competitive edge.
The actuarial field may face a talent shortage in the coming decade as demand rises. Additional education programs and exam support resources could help address pipeline issues long-term.
Conclusion
In summary, how much does actuary make can vary widely based on factors such as experience, location, and industry. Entry-level actuaries can expect to start with a solid income, while those with more expertise and advanced certifications can see significant increases in their earnings. Actuaries in major cities or specialized fields often earn higher salaries due to the demand for their expertise. Overall, a career as an actuary offers a promising financial future, with ample opportunities for growth and advancement.
Frequently Asked Questions
What does an actuary do?
An actuary uses math, statistics, and financial theory to study uncertain future events, especially those that affect insurance and pension programs.
What is the average salary of an actuary?
The average salary of an actuary in the U.S. is around $88,255 per year or about $42.43 per hour.
How much does an entry-level actuary make?
An entry-level actuary typically earns around $52,000 to $68,700 per year.
What factors influence an actuary’s salary?
An actuary’s salary can be influenced by their location, education, experience, and industry.
Which state pays the highest salary for actuaries?
New York is known to offer the highest average salary for actuaries.
Do actuaries with higher education earn more?
Yes, actuaries with advanced degrees or certifications usually earn higher salaries.
What industries pay the most for actuaries?
Industries like consulting firms, insurance, and healthcare tend to offer higher salaries for actuaries.
Is there a demand for actuaries in the job market?
Yes, the demand for actuaries is expected to grow, and the job outlook is positive in the coming years.