ADD ADVICE TO FAVActuary
Actuaries apply theories of probability to financial problems, and assess risks, probabilities and long-term effects of decisions.
What actuaries do
- advise on investments
- provide strategic business advice
- design and manage new pension schemes
- use compound interest and statistical techniques
- use specialised computer software
- if employed in life assurance companies, calculate rates to be charged for insurance premiums, determine bonuses paid to policy-holders and assess the general financial state of the company
- may work as actuarial consultants, advising on pension schemes and employee benefits.
Key skills
- numeracy and mathematical ability
- accuracy and problem-solving
- analytical skills
- ability to concentrate and pay attention to detail
- written and verbal communication skills (and ability to explain matters to non-specialists).
Training to be an actuary
Actuaries train in employment and take the professional examinations of either the Faculty of Actuaries (Scotland) or the Institute of Actuaries (England and Wales).
Examinations can be completed in as little as two years, but the average time taken is four to five. Some employers sponsor students through one-year, full-time postgraduate courses that exempt them from 50% of the examinations.
Salaries
Starting salaries range from £23,000 to £26,000. Newly qualified actuaries can earn £53,000 or more; experienced ones well over £100,000.
