As with many jobs, actuarial salaries can vary depending on several factors. One common factor to consider is the type of employer. This includes private firms, large companies, non-profit organizations, and government agencies. In some cases, actuaries can be self-employed and work for a company on a freelance or a contractual basis. Statistics show that actuaries who work for private firms or companies command a higher salary compared to other employers.
If an actuary is choosing companies, he should consider the size and population within the company. Actuarial salary can be higher in smaller-sized companies; profits are distributed among fewer people, which makes for a larger amount. The type of industry also matters when it comes to salary rates. Some top-earning industries include life and health insurance, financial consultation, and human resources consultation.
Another factor that affects actuarial salaries is experience. Generally, actuaries with more years of experience have greater chances of receiving higher pay. This, however, does not just mean the quantity of experience, but also the quality. This is reflected by acquired certifications, attended workshops and seminars, and special skills. Potential employers can even look at past employers to gauge an actuary’s experience.
Education is also a determining factor for the rate of salary. An actuary with a corresponding undergraduate degree, such as mathematics and statistics, can receive or request a salary increase. Quality of education also counts. Graduating with honors can potentially get an actuary a higher salary, and so will finishing from top universities. Of course, double degrees and a master’s degree can also positively affect actuarial salaries.
Actuarial salaries can also differ according to locations or cities. Usually, populous cities, where companies can be very competitive, can give higher salaries than less populous ones. Urbanized locations are also opportunities for an increased salary as compared to small towns or rural areas. US cities that offer higher salaries are Los Angeles, New York, and Hartford.
Sometimes, employers can increase an actuary’s salary in non-financial methods. In this case, actuarial salaries do not necessarily increase, but the cost of their employee benefits and privileges do. Actuaries can receive perks like paid vacations and sick leave, education reimbursement, and a larger insurance coverage. Sometimes, they are even rewarded with flexi-time work schedules. Employers can give these “salary increases” based on performance evaluation or company loyalty.