Actuaries are financial professionals who use mathematics, statistics, and financial theory to measure and manage risk.
They are essential to the insurance, pension, and financial sectors — calculating the likelihood of events like death, illness, accidents, and natural disasters to help organizations price risk and manage financial reserves.
Actuaries are among the most well-compensated professionals in the U.S., with the median actuary salary sitting at approximately $120,000–$130,000 as of 2026, with consistently high job satisfaction and a strong employment outlook.
This guide explains what actuaries do, how much they earn, and what's required to become one.
Core Responsibilities of an Actuary
Actuaries analyze statistical data to estimate the probability and financial impact of future events. In life insurance, they calculate life expectancy tables and premium rates. In property and casualty insurance, they model claims frequency and severity.
In pensions and retirement, they calculate funding requirements and benefit projections — work that often intersects with understanding tools like annuities and defined benefit plans.
Actuaries also work in enterprise risk management, healthcare analytics, and financial modeling.
For those considering entering the field, our guide on how to become an actuary covers the full exam and credentialing path.
Work Settings
Most actuaries work for insurance companies, consulting firms, or government agencies. A growing share work in financial services, healthcare, and corporate risk management. The role is primarily desk-based with strong use of statistical software (R, Python, SAS) and actuarial modeling tools.
Actuaries frequently collaborate with financial analysts and underwriters on risk pricing and product development, making cross-functional knowledge of financial markets valuable.
Actuary Salary
According to the U.S. Bureau of Labor Statistics, the median annual salary for actuaries is approximately $120,000–$130,000 as of 2026.
Entry-level actuarial analysts typically start at $70,000–$90,000.
Fully credentialed actuaries (Fellows of the Society of Actuaries or Casualty Actuarial Society) command $130,000–$200,000+, with senior and consulting roles exceeding $300,000.
Geographic variation matters — actuaries in major financial centers or high-cost states like those with a significant cost of living in New York tend to earn above national figures.
Compared to adjacent quantitative roles, the financial analyst salary at senior levels runs meaningfully below what actuaries with full fellowship credentials earn, reflecting the higher barrier to entry of the actuarial exam system.
Actuary Job Outlook
The BLS projects strong job growth for actuaries — faster than average — driven by demand in health insurance, risk management, and data-intensive industries.
Actuarial skills are increasingly applied beyond traditional insurance in fintech, healthcare analytics, and algorithmic risk modeling.
The profession's high salary, intellectual challenge, and low unemployment rate make it one of the most attractive quantitative careers available.
Those building toward long-term financial security in this high-earning profession may find it useful to understand how much to contribute to your 401(k) and how much to save for retirement at each career stage.
Frequently Asked Questions
What does an actuary do every day?
Actuaries analyze statistical data, build probability models, review insurance or pension plan assumptions, prepare reports, and collaborate with underwriters, finance teams, and regulators.
How long does it take to become an actuary?
Becoming a fully credentialed actuary (Fellow) typically takes 7–10 years — a bachelor's degree plus passing 7–10 actuarial exams over several years while working. For a detailed roadmap, see our guide on how to become an actuary.
What is the starting salary for an actuary?
Entry-level actuarial analysts typically start at $70,000–$90,000/year, with significant increases tied to passing actuarial exams.
Are actuaries in demand?
Yes — the BLS projects above-average job growth for actuaries, driven by expanding risk management needs across insurance, healthcare, and financial services.
What exams do actuaries need to pass?
Actuaries pursuing credentialing through the Society of Actuaries (SOA) or Casualty Actuarial Society (CAS) must pass a series of 7–10 rigorous professional exams.
Each exam typically takes 300–400+ hours of preparation.
The process is demanding but creates a strong barrier to entry that supports the profession's premium compensation.
Sources & References
- U.S. Bureau of Labor Statistics — Actuaries Occupational Outlook Handbook — https://www.bls.gov/ooh/math/actuaries.htm
- Society of Actuaries — actuarial education and credentials — https://www.soa.org/
- Casualty Actuarial Society — credentialing information — https://www.casact.org/
- U.S. Bureau of Labor Statistics — Actuaries wage data — https://www.bls.gov/oes/current/oes152011.htm
Last updated: April 27, 2026