Many people ask me how to become an actuary. With the demand for analytical minds rising across industries, actuarial science has become one of the most respected and well-paying professions.
If you’re someone who loves math, statistics, and problem-solving, becoming an actuary could be the perfect career path for you.
In this article, I’ll walk you through everything you need to know — from education and exams to job outlook and salary expectations. Whether you’re still in school or thinking about a career change, this guide will give you a clear roadmap on how to become an actuary.
Key Takeaways
- Becoming an actuary requires strong mathematical and analytical skills.
- Passing a series of professional exams is essential for certification.
- An undergraduate degree in mathematics, statistics, or finance is typically required.
- Internships and relevant experience boost your chances of landing a job.
- Actuaries enjoy high earning potential and strong job security.
Understanding What an Actuary Does
An actuary is a business professional who uses mathematics, statistics, and financial theory to assess risk in insurance, finance, and other industries.
Actuaries help businesses develop policies that minimize the financial impact of uncertain events — whether it’s predicting the likelihood of natural disasters, calculating life expectancy for insurance premiums, or assessing investment risks.
The work of an actuary is highly analytical and strategic, making it a rewarding but challenging career.
How Actuarial Careers Differ from Other Financial Professions
While actuaries often work alongside accountants, economists, and financial analysts, their focus is unique.
Unlike general financial analysts, actuaries specialize in quantifying risk using complex models and probability theory.
They are also more heavily regulated in terms of certification — requiring years of study and passing a series of rigorous exams to earn full professional status.
Benefits of Pursuing an Actuarial Career
Here are some of the top reasons why people choose to become actuaries:
1. High Earning Potential
Actuaries rank among the highest-paid professionals in the world. According to the U.S. Bureau of Labor Statistics (BLS), the median annual wage for actuaries was $108,350 as of May 2022 , with top earners making over $200,000.
2. Job Security
With the increasing complexity of global markets and the growing importance of risk management, actuaries are in high demand across many sectors.
3. Intellectual Challenge
If you enjoy solving complex problems and working with numbers, the intellectual rigor of actuarial work can be very satisfying.
4. Professional Recognition
Becoming a fully credentialed actuary brings prestige and respect within the industry. It’s a career that values continuous learning and excellence.
“Actuarial science combines the beauty of mathematics with the practicality of real-world applications. It’s not just about numbers — it’s about helping organizations make smart decisions.”
— American Academy of Actuaries
Who Should Consider Becoming an Actuary?
This career is ideal for individuals who:
- Excel in mathematics and statistics
- Are detail-oriented and methodical
- Enjoy analyzing data and building predictive models
- Are self-motivated and able to handle long-term commitments (like studying for exams)
It’s also a great option for those who want a stable, high-paying job without needing a graduate degree right away.
Step-by-Step Guide: How to Become an Actuary
Now that we’ve covered the basics, let’s dive into the step-by-step process of how to become an actuary.
Step 1: Earn a Bachelor’s Degree
Most actuaries begin by earning a bachelor’s degree in one of the following fields:
- Mathematics
- Statistics
- Actuarial Science
- Finance
- Economics
Some universities even offer actuarial science programs specifically designed to prepare students for the profession.
These programs typically include courses in:
- Probability and statistics
- Calculus
- Risk management
- Financial accounting
- Economics
- Computer science (for modeling and programming)
Tip: Look for schools that are recognized by the Society of Actuaries (SOA) or the Casualty Actuarial Society (CAS) . Some programs offer Validation by Educational Experience (VEE) credits that can help reduce your exam load later.
Step 2: Pass the Entry-Level Actuarial Exams
To become a certified actuary, you must pass a series of professional exams administered by either the Society of Actuaries (SOA) or the Casualty Actuarial Society (CAS) .
The two main entry-level exams are:
1. Exam P (Probability)
- Focuses on probability theory and its application in risk assessment
- Typically taken early in your academic career
2. Exam FM (Financial Mathematics)
- Covers interest theory, annuities, loans, and bonds
- Builds foundational knowledge for financial modeling
You can start taking these exams while still in college. Many students take one or two exams before graduating to improve their job prospects.
Step 3: Gain Relevant Experience Through Internships
Internships are invaluable in the actuarial field. They provide hands-on experience and help you build connections in the industry.
Many employers prefer to hire candidates who have completed at least one internship during their undergraduate studies.
Common internship roles include:
- Actuarial analyst intern
- Risk management intern
- Insurance pricing assistant
These positions allow you to apply what you’ve learned in class to real-world problems and demonstrate your commitment to the profession.
Step 4: Begin Your Career as an Actuarial Analyst
After graduation and passing one or two exams, you can start your career as an actuarial analyst .
At this stage, you’ll assist senior actuaries in:
- Preparing reports
- Analyzing data
- Supporting pricing and reserving projects
- Running statistical models
Your employer will often support your continued exam progress by offering:
- Study time
- Exam bonuses
- Tuition reimbursement
Step 5: Continue Passing Exams and Earning Credentials
As you gain experience, you’ll continue passing exams to earn higher credentials:
Associate (ASA) – Society of Actuaries
Typically takes 4–6 years to complete. Requires passing 5–7 exams plus VEE courses and e-learning modules.
Fellow (FSA)
Earned after completing additional specialty exams in areas like:
- Life insurance
- Retirement benefits
- Enterprise risk management
Associate (ACAS) or Fellow (FCAS) – Casualty Actuarial Society
For those interested in property and casualty insurance, such as auto or homeowners’ insurance.
Each level comes with increased responsibilities and salary increases.
Step 6: Specialize in a Particular Area
Once you’ve earned your associate designation, you can choose to specialize in one of several actuarial fields:
| Specialty | Description |
|---|---|
| Life Insurance | Pricing life insurance products, assessing mortality rates |
| Health Insurance | Evaluating health care costs and trends |
| Property & Casualty | Assessing risk for auto, home, and commercial insurance |
| Pensions & Retirement | Designing retirement plans and ensuring funding adequacy |
| Enterprise Risk Management (ERM) | Helping companies manage broad financial risks |
Specializing allows you to deepen your expertise and potentially move into leadership roles.
Step 7: Advance to Leadership Roles
As you gain experience and credentials, you may advance to roles such as:
- Senior Actuary
- Actuarial Manager
- Chief Risk Officer (CRO)
- Consultant
These roles involve leading teams, managing large-scale projects, and advising executives on strategic decisions.
Top Skills Needed to Succeed as an Actuary
To thrive in this profession, you’ll need a mix of technical and soft skills:
| Skill | Description |
|---|---|
| Mathematical Proficiency | Strong grasp of calculus, probability, and statistics |
| Analytical Thinking | Ability to interpret complex data and model future scenarios |
| Programming Knowledge | Familiarity with Excel, R, Python, SQL, or VBA |
| Communication Skills | Present findings clearly to non-technical audiences |
| Attention to Detail | Precision is critical when dealing with risk calculations |
| Business Acumen | Understand how financial systems, insurance markets, and regulations work |
Developing these skills early on will set you up for success throughout your career.
How Long Does It Take to Become an Actuary?
The journey to becoming a fully qualified actuary typically takes 7–10 years , including:
- 4 years of undergraduate study
- 4–6 years of part-time exam preparation
- Gaining professional experience along the way
However, many actuaries begin working full-time after passing 1–2 exams and continue studying while employed.
Career Outlook and Salary Expectations
According to the U.S. Bureau of Labor Statistics (BLS), employment of actuaries is projected to grow 21% from 2022 to 2032 , much faster than the average for all occupations.
This growth is driven by the increasing need for risk analysis in insurance, healthcare, and financial services.
Average Actuary Salaries (U.S.)
| Experience Level | Average Annual Salary |
|---|---|
| Entry-Level (0–3 years) | $65,000 – $85,000 |
| Mid-Level (4–9 years) | $90,000 – $120,000 |
| Senior/Manager (10+ years) | $130,000 – $200,000+ |
Keep in mind that salaries can vary based on location, industry, and certifications.
Top Schools Offering Actuarial Programs
Several universities offer strong actuarial science programs and are recognized by the SOA and CAS. Here are a few notable ones:
1. University of Wisconsin-Madison
- Offers a top-ranked actuarial program
- Strong placement record with major firms
2. University of Illinois Urbana-Champaign
- Recognized for its actuarial research and VEE credits
- Excellent exam pass rates
3. Ball State University
- One of the largest undergraduate actuarial programs in the U.S.
- Known for high internship and job placement rates
4. University of Waterloo (Canada)
- Offers a co-op program that integrates work experience with academics
- Highly respected globally
These schools not only prepare students for exams but also connect them with internships and job opportunities.
Common Challenges and How to Overcome Them
While the rewards are great, becoming an actuary isn’t without its challenges.
1. Long Exam Process
Passing all the required exams can take years. Staying motivated and disciplined is key.
Solution: Set a study schedule, use prep seminars, and take advantage of employer support.
2. Balancing Work and Study
Working full-time while preparing for exams can be stressful.
Solution: Prioritize time management, seek flexible work arrangements, and join study groups.
3. Competition for Jobs
Entry-level positions can be competitive.
Solution: Build a strong resume with internships, extracurriculars, and early exam success.
Frequently Asked Questions (FAQ)
Q: What degree do I need to become an actuary?
A: A bachelor’s degree in mathematics, statistics, actuarial science, economics, or finance is typically required.
Q: How many exams do actuaries need to pass?
A: To become an Associate, you’ll need to pass around 7–10 exams, depending on the credentialing society (SOA or CAS).
Q: Is becoming an actuary worth it?
A: Yes, especially if you enjoy analytical work. The profession offers high pay, job security, and intellectual satisfaction.
Q: Can I become an actuary without a degree?
A: While technically possible, it’s extremely rare and not recommended. Most employers require at least a bachelor’s degree.
Q: Do actuaries use computers and software?
A: Yes, actuaries regularly use Excel, statistical software (like R or SAS), and programming languages (such as Python or VBA).
Q: How much do entry-level actuaries make?
A: Starting salaries range from $60,000 to $85,000, with bonuses for passing exams.
Q: What’s the difference between an actuary and an accountant?
A: Accountants focus on recording and reporting past financial transactions, while actuaries predict and manage future financial risks.
Q: Can I switch careers to become an actuary?
A: Yes, many actuaries start in related fields like finance, analytics, or teaching before transitioning.
Conclusion: Is Becoming an Actuary Right for You?
Becoming an actuary is a long but rewarding journey. It’s a career that blends mathematics, finance, and business strategy to solve real-world problems.
If you’re passionate about numbers, enjoy analytical thinking, and are willing to commit to ongoing education, then a career as an actuary could be an excellent fit.
By following the steps outlined in this guide — earning the right degree, passing professional exams, gaining experience, and continuing to grow professionally — you can build a successful and fulfilling career in this prestigious field.
So, if you’ve ever wondered how to become an actuary, now you have a clear roadmap to follow. Start today, stay committed, and you’ll soon find yourself on a path to a high-impact, high-reward profession.