The actuary career puts you in contact with numbers all day, every day. If the idea of pulling a story out of disparate digits fills you with joy, this could be the career for you.
And if you've read even one "hidden career opportunity" blog post within the last decade — particularly those that concern work-at-home jobs — you're probably interested in the salary and job growth statistics associated with the actuary lifestyle.
While you can get a solid, well-paying, reliable actuary job with just a bit of education and some on-the-job training, you'll need to choose your employer carefully. And you might need to expand your definition of an actuary's job, as the positions of the future might look very different from those you can find today.
What Is an Actuary?
Don't be ashamed if you're not quite sure what people in this position handle regularly. Once you become an actuary, you'll become accustomed to answering all sorts of questions about what you do and how you got your job. While this isn't a new position, it's often misunderstood. Let's begin with a quick refresher on what this job involves.
An actuary deals with risk and uncertainty. During your workday, you'll use a combination of statistics and mathematical theories to understand the potential impact of a decision.
For example, you might work for a company that writes insurance policies. Your company is considering a new product made for people who:
Are 65 and older
Have a history of heart disease
Live on the West Coast
Smoke cigarettes
Your job is to understand how much your company will pay in death benefits each year and how much a policy might cost so you can cover that risk.
Or you might work for a company that manages pensions for a group of firefighters. Your job will involve understanding how many might enroll every year and how much they should contribute so the fund won't ever run dry.
Actuary work is precise and technical, and it's also critical to the success of some types of companies. It's not an entry-level job, and the salary is set accordingly. According to the Bureau of Labor Statistics, the median salary for actuaries in May 2018 was $102,880.
Actuary Hot Spots by State
Anytime there's risk, an actuary could get involved. But typically, this is a job that's associated with the insurance industry, and most actuaries work in the headquarters of the companies that employ them.
Not surprisingly, you'll find jobs clustered in the part of the country associated with insurance and big business. But you might get a higher salary in other parts of America. To understand job scarcity and actuary salary, we mined data from the Bureau of Labor Statistics.
The states with the highest level of actuary employment include:
New York
Pennsylvania
Ohio
Illinois
California
The majority of these states play host to major insurance carriers, including health insurance companies. These industries live or die by risk management, and they often need armies of actuaries to help them understand what to charge for their products and how to protect against disaster.
But this list also includes a few states (We're looking at you, California!) associated with startup business culture. A new enterprise also needs to mitigate risk, so products can launch with a small amount of competition and a high amount of profit. In those states, actuary jobs are also critical.
The states with the highest salaries for actuaries include:
Again, we're seeing the influence of insurance companies. But you'll notice that only one western state appears on this list, and it isn't California. If you thought actuaries would ride on the coattails of the California small business boom, you might be mistaken. Your salary may not reflect your hard work.
Actuary Hot Spots by Region
Now that we've looked at which states are best for actuaries, let's narrow the focus and examine cities. Listed below are 10 metropolitan cities with the highest actuary employment levels, along with average local salaries:
There's a close connection between high employment levels and high salaries, but the lists don't overlap completely. If salary drives your career path, you might have more options than you first thought.
Looking for actuary jobs?
How to Find a Job
Do your research carefully, and you might walk away believing you will find the perfect position as soon as you start looking. It's important to note that according to the Bureau of Labor Statistics, while 22 percent job growth is expected between 2016 and 2026, that only represents about 5,300 new jobs. Ouch.
Competition may be fierce, but there are things you can do to set yourself apart.
Take the right classes. While you're in school, get familiar with spreadsheets, statistics, and corporate finance. Make sure you know at least a bit about computer programming too.
Keep your grades up.Purdue suggests that employers won't look twice at students with a GPA lower than 3.2. Make sure to prioritize your schoolwork so you can keep your numbers up.
Look for on-the-job training. Companies like Geico will help you get your degree, pass your certification tests, and more. You'll do all of that while you take home a paycheck. If you don't have a lot of experience, this could be a good option for you.
Show off your certification and status. If you hold a fellowship status, trumpet that from the hilltops. It can take about 10 years to get there, says the Bureau of Labor Statistics, but once you have it, you should have a career for life.
Trends in the Industry
If you're looking for an actuary job now, you should probably start your search in a major city on the East Coast that’s home to plenty of insurance companies. Most jobs are clustered here, and you should be able to land a position relatively quickly. If your career hasn't quite started yet, there are a few trends you should know about which could potentially change the qualifications and skills you need for this job.
Those trends include:
Rising business risk. As the Bureau of Labor Statistics points out, actuary job growth comes from the private sector, including small business. Companies need to learn more about how to protect against all kinds of threats so they can deliver value to their customers and stakeholders. Understanding enterprise risk management will be crucial for successful actuaries of the future.
Artificial intelligence. Computers are changing almost everything about the work we do, and actuaries aren't immune. While experts say it's unlikely that a computer will replace you or take your job away, you may need to know how to write computer programs and analyze the data that emerges. Risk management will get more complex, and your ability to analyze thousands of data points simultaneously while explaining it in plain language will help you succeed.
The work-from-home revolution. Years ago, everyone traveled to and from the office every day. Now, teams are scattered all across the nation or even all around the world. More than 40 percent of people worked from home in 2016, according to Gallup, and that number is expected to rise next year. While you might look for a job in one spot, you might do the work from thousands of miles away and you'll need a quiet home office to make that happen.
Search for the Job of Your Dreams
Don't let the opportunity pass you by. Seek out the job that will make you — and your wallet — happy. We can help!
We've collected actuary jobs from all across the country, and our platform makes it easy for you to compare jobs so you can make the smart choice. Your searches are free, and there's no real risk (get it?). Start searching open actuary positions today.
References
Actuaries. (April 2019). Bureau of Labor Statistics.
