Why Choose Actuarial Science as a Career?

Discover why actuarial science is a compelling career choice, offering job stability, rewarding challenges, and diverse opportunities in risk management and financial planning, with a clear path for professional advancement and continuous learning.

Pros and Cons of Actuarial Science

Are you considering a career in actuarial science? Maybe wondering why someone would want to become an actuary or choose an actuarial science degree? Or maybe you have recently finished school with mathematics being your strongest subject and you’re looking for the highest paid mathematical jobs, so you get some bang for your buck out of your degree choice?

Then let me give you some insight into the profession as I have experienced it thus far so. And help you answer the question: Why Choose Actuarial Science? 

I am currently a final year actuarial science university student, who is looking to progress with a career in the profession. Being 4 years into my degree, and having a year of professional work experience under my belt, I feel I have gained a good insight into the profession.

I have found many pros with this line of work which is why I’m progressing with a career in this area, however don’t let that fool you, as I am also aware of the many cons that I have faced so far and will eventually face in the future throughout my career. I will take you through these pros and cons and let you make your own mind up as to whether this profession is the one for you.

So to begin, what is involved in an actuarial role?

• Actuarial science involves applying mathematical and statistical methods in order to assess risk in insurance, finance and other various industries and professions. 
• Actuarial science includes a number of interrelated subjects, including mathematics, statistics, probability, finance, economics, and computer science.
• Much of an actuary’s work centres around risk management. An actuary will predict and measure the magnitude of future risks and put measures in place to help reduce them.
• Actuary’s analyse past and present data and use this information to solve real world business problems.
• Depending on where their career takes them, an actuary could be involved in determining the cost of insurance premiums, advising a company on their pension’s plans or managing financial assets and liabilities.
• Actuaries must also be able to explain and offer advice on difficult topics to clients and so must have excellent communication skills.

In order to not scare you off straight away I’ll start out on a positive note by taking you through some of pros that may attract you to this career.

Why Choose Actuarial Science? The Pros

Job Security

I know for myself this is something that really drew me to this degree and career. I didn’t want to complete my university degree and come out of it now knowing my next move.

An actuarial science degree is very beneficial if you are looking to become an actuary. It provides you with the skills and experience needed for the role and gives you a good idea of what to expect in the job and when completing professional exams. There are many opportunities and roles available once you finish your degree.

An actuarial career is a stable one. There will always be a need for actuaries, particularly within insurance companies. Within this profession the chance of unemployment is quite low, with a current unemployment rate of 2.56%. It is also projected that the future employment of actuaries is expected to continue to grow. The expected rate of employment of actuaries is predicted to grow 24% through to 2030. This rate is much faster than the average growth for occupations.

Excellent Study Support and Training

While the professional exams can be very daunting and require a lot of time and energy, employers are very aware of this and often offer helpful study support. Many employers offer paid study leave, as well as covering the costs of external tuition and exam costs.

I found while on placement many of my colleges where working through the exams at the same time, so you will not be alone and will have others to work with. Also the more qualified actuaries in your work place will be more than happy to offer help and guidance.

If you are planning on completing an actuarial science degree, you can gain some exemptions from these professional exams depending on how well you perform overall. In total there are 6 professional exam exceptions that can be obtained, which you’ll be very grateful of if you progress with this career.

Wide Range of Opportunities

Within the actuarial profession there are many different areas of work you can go into. This gives you the opportunity to individualise your career and even specialise in a certain area. There is now an increasing number of emerging job opportunities in industry for risk management careers. Some examples of actuarial work are:

• Pensions – calculating and advising on contributions needed to fund pension schemes
• Consulting – advising clients on financial risks, typically associated with employee benefits and insurance
• Banking and Financial Services – helping companies with their product portfolio, capital management and risk analysis
• Predictive Analytics – using modelling and data analysis techniques on large data sets to discover patterns and predict relationships for business use
• Pricing – determining product features and pricing
• Reinsurance – performing actuarial duties for a reinsurer that accepts risk from a direct insurance company
• Valuation – performing experience studies, cash flow testing and other tasks to set the amount of reserve and capital held by an insurer

As well as being able to go into a range of different areas, a UK actuarial qualification is highly valued throughout the world. There are many roles available in the UK and Ireland if you wish to stay closer to home, but there are also many international opportunities in locations such as Australia, New Zealand, Canada and India to name a few.

Interesting and Intellectually Challenging

Many go into this career path due to their love of mathematics, probability and statistics. An actuarial career is heavily based on these topics, and every day the work you undertake will involve them, so if that sounds like something you enjoy then this career may suit you.

However if you are someone who is looking to go into a career where you go through the same process every day then this may not be for you. In an actuarial role no two days are the same and you will often be faced with intellectually challenging problems.

Problem solving and analytical thinking are key qualities needed in this role. This is something that, whilst being challenging, also keeps the job interesting in my opinion. This career path will allow you to build on your mathematical and statistical knowledge to solve complex real world problems.

The Salary

If we’re honest, the main thing that has probably attracted you to this role is the impressive salary and earning potential. While actuaries work hard they do enjoy a high financial reward. The average starting salary for graduate actuaries is generally between £25,000 and £35,000. This usually rises as you gain more experience and progress through your professional exams. As a newly qualified actuarial analyst or consultant, you can expect to earn in the region of £40,000 and £55,000. Senior actuarial analysts can commonly earn in the region of £70,000, although this can rise as high as £110,000.

These statistics tend to draw many into the profession, but hopefully if you’re considering this career, the pay check is just an added benefit. You shouldn’t go into the career if you are just after the money, it’s important to enjoy and feel satisfied in your role.

Now that I’ve made actuary sound like the dream job for mathematicians, let’s move onto the not so glamorous side of the profession. This role is not be for everyone and it’s important to realise this early on.

Why Choose Actuarial Science? The Cons

The Exams!!!

I would say many progressing with this career would agree with me when I say that the exams are definitely the main downside to this career.

Becoming an actuary is not easy. 

To progress towards becoming fully qualified you must pass a series of exams, which are by no means easy. Employers will expect you to complete a certain number of these exams every year. For example, it may be required that you pass at least one exam every 1 or 1.5 years.

Studying for these exams takes many hours of your own individual time, and once this is combined with office work it can become a very draining and challenging process. Many people take 7-10 years to become fully qualified, and within that time frame you don’t get many breaks from studying. This is something that you really need to consider before progressing with this career.

Individual Work

If you are someone who enjoys working in a team or with others then this role may not be for you. Actuaries tend to work as part of a wider team but the tasks are often completed alone. From my experience of working in a professional environment, in a technical role, the bulk of my work was individual with the only interactions with others being during meetings. You may find in this role that your computer will become your closest co-worker, as you’ll spend more time at it than actually speaking to people. It’s important to consider this, however if your someone who enjoys individual work this aspect may be good news to you.

Can Be Mentally Draining

As an actuary, you are always thinking and problem solving. For some people this may be something they like about the role, but for some this can be quite challenging and exhausting.

I found while I was completing my work experience I would get home from work and need a nap to refresh, but then you also need to make time to study for upcoming exams.

Actuarial work isn’t very routine and you are always thinking and working things out, so if you are looking for a more relaxed job, without much thinking required, this profession may not be for you.

Working Environment

This career typically involves working in an office environment, and spending many hours in front of a computer which may not be for everyone. It’s important to consider whether you can see yourself working in this type of environment long term or if you need more variety.

As a result of the recent pandemic however the typical work environment for actuaries has shifted. The majority of actuaries where forced to take their computers home and set up office in their living rooms during the pandemic.

As a result many workplaces have now introduced a hybrid model of working, meaning some days are spent in the office and some at home. This flexibility in location may be a new found benefit to the role for some individuals.

Work-Life Balance

You may have been sold the idea that you can have a very good work-life balance in this profession, however from my personal experience this is only partly true.

Yes, actuaries can have this balance but only really when they have become fully qualified.

Prior to this I feel a work-life balance is hard to maintain. Between working in the office and time spent studying, it leaves little space for a social life. I also find many aspiring actuaries aim to compete the exams early in their careers but you may also want to consider whether you want to spend your youth stressed out over work and exams.

Hopefully this article has answered your questions around, ‘Why Choose Actuarial Science’ as a career and allowed you to weigh up some of the pros and cons.

For many people this career is great choice. It can be very rewarding and fulfilling if you are willing to put in the time and effort.

So, what do you think? Are you still interested in an actuarial career?

Why Choose Actuarial Science FAQs