Being an actuary means figuring out what financial risks a company is looking at and coming up with ways to avoid them or if one were to occur, how to reduce the negative impacts. For the most part, actuaries really love being actuaries, but it is important to be sure before you start out. Here’s a look at the pros and cons of being an actuary.
Pro: Actuarial science is a great way to incorporate multiple disciplines into your career.
An actuary is not just a business person, but also a mathematician, statistician, and financial theorist. Most programs are part of more than one department (i.e. mathematics and statistics). If you enjoy pulling together several different skills and making something out of them, being an actuary might be perfect for you.
Con: You have to put in a lot of work to be one. Forever.
Unfortunately, this also means you are learning a lot of different subjects and how to mesh them all together. Not only are you likely to need a master’s degree, you may need your PhD. Additionally for a position as an actuary you’ll have to pass examinations for professional societies based on actuarial science specialties. Being an actuary also requires continued education -- you have to meet a specific number of hours of ongoing learning for the rest of your career.
Pro: You can individualize your career trajectory.
Choosing a career in actuarial science is far from limiting. As you gain experience as an actuary other positions become an option. Depending on your education, you can work as an actuarial specialist or actuarial services director -- both of which will likely come close to tripling your starting salary. With a doctorate in actuarial sciences, you can teach in multiple departments or start consulting. Actuaries have plenty of rewarding alternatives.
Con: There is very little room for error.
To be a successful actuary, you have to be excellent at what you do. You are playing with the fate of millions or even billions of dollars in many situations. While you have computer programs to help with a lot of it, ultimately you have to know when something sounds suspect. Not only do you need great analytical skills, actuarial science will demand creativity too. Actuaries wear a lot of hats, and they have to wear all of them well.
Pro: There’s great earning potential and rate of growth.
A starting salary for an actuary is generally around $60,000. According to the Bureau of Labor Statistics (BLS), the highest paid 10% earn six figures. Almost any of the more specialized actuarial careers is going well over $100,000 a year and it is fairly common to make close to $200,000 in certain positions. The job growth rate for actuaries is also growing fast -- much faster than average: the BLS says growth rate is at 18% between 2014 and 2024. Not only are you looking at a great salary, it shouldn’t be too hard to find open positions.
Con: Don’t be surprised if your computer is your closest coworker.
While it is necessary for actuaries to be comfortable and capable of clearly presenting their precise and important information, this isn’t where you will be spending the majority of your work week. Much of an actuaries time is spent shut up in an office in solitude, crunching numbers and running specialized software. So if you’re going into actuarial science for the scintillating conversation, it’s best to be fluent in binary.
