Some great career paths are, unfortunately, not well known. One such career is that of the actuary, where salaries in the six figures are the norm with experience; work conditions are great; and only a bachelor’s degree is required.
What is an actuary? It is funny that you ask. It is the second best job in America, according to Careercast’s 2012 ranking. According to the Occupational Outlook Handbook, “Actuaries analyze the financial costs of risk and uncertainty [by using] mathematics, statistics, and financial theory.” Thus, they are a crucial aid to businesses in risk management decisions, which are made to reduce predicted costs and improve the bottom line.
Obviously, persons of a mathematical inclination will be attracted to this job. There are, however, many other skills that are necessary. This can be seen by the fact that employers generally do not place much emphasis on the specific college degree one gets as they do on one’s ability to pass the infamous actuarial exams. These rigorous exams’ contents range from probability to financial economics to other very specific finance-related concepts. It is not unheard of for a candidate to take a decade to complete all of the exams in order to obtain fellowship, which is the highest distinction in an actuarial society.
One’s journey to fellowship certainly matters financially, as can be seen by the following results of surveys done on the correlation between the number of exams passed and one’s salary. There is certainly a strong direct correlation, keeping years of experience constant. It seems that a substantial number of actuarial fellows with over 19.5 years of experience make over $300,000 a year! In fact, the surveys suggest that over 90% of fellows with such experience make at least $177,000 a year in property and casualty, an area of actuarial work.
While the exam process is very difficult and is commonly regarded and the most stressful part of becoming a full-fledged actuary, the benefits are enormous. They are in high demand, receive a great salary, and have a significant influence in a firm’s success. Furthermore, many employers pay aspiring actuaries to study for exams and these aspiring actuaries can indeed find some work after passing only one or two exams.
I am currently studying for Exam P, the first actuarial exam. It is very difficult material to grasp alone, but the rewards of passing such an exam would be a significant milestone toward my dream career of being an actuary. I know family friends who are actuaries, and they seem to have the best lifestyles and enjoy intriguing mathematical work. They have so much influence on their firms’ management decisions while generally working on mathematical modeling and predictions, which sounds like a perfect job for more introverted people that like mathematical work. These family friends have confided in me many insider stories into the lives of actuaries, and frankly, I can’t wait to become one.
Hopefully, I’ve given some insight into a great career. Maybe some of you are even considering taking the road to becoming an actuary. If so, I don’t blame you- I’m in the same boat!
