The actuarial profession is consistently ranked as one of the top careers in terms of job satisfaction, work-life balance, and salary potential. For aspiring actuaries, understanding the financial trajectory of their career is crucial, especially for those pursuing the Casualty Actuarial Society (CAS) credentials. This guide provides a deep dive into salary expectations for actuaries, and CAS actuaries in particular, and explores how factors like exam progress, credentials, industry, and company type impact earnings potential.
What is the Average Salary for an Actuary?
Actuarial salaries vary based on experience, location, and credentials. According to the BLS Occupational Outlook Handbook, the median annual salaryfor an actuary in the United States is approximately $120,000 per year. However, this figure represents actuaries across all levels, from entry-level to highly experienced professionals.
- Entry-Level Actuaries: Those with 0–1 years of experience and 1–3 exams passed can expect a starting salary of around $70,000-$80,000.
- Mid-Level Actuaries: CAS actuaries with 5–10 years of experience, credentialed as ACAS or FCAS, see salaries ranging from $150,000–$200,000.
- Senior FCAS Actuaries and Executives: Experienced actuaries in leadership roles, such as Chief Actuaries, can command salaries anywhere from $200,000–$500,000, depending on company size, location, and role.
As you can see, experienced FCAS actuaries can earn significantly more than than the average actuary.
How Does an Actuary Salary Compare to Similar Professions?
Compared to similar professions, actuarial salaries are very competitive. The BLS Occupation Handbook shows the following salaries for similar professions as of their 2023 data:
- Actuaries – $120,000
- Accountants & Auditors – $79,880
- Data Scientists – $108,020
- Mathematicians & Statisticians – $104,860
- Financial Analysts – $99,890
As you can see actuaries make great salaries compared to similar fields. It’s possible some niche, high-stress fields like investment banking may make higher salaries, but the combination of high salary and opportunity for good work-life balance in the actuarial field is hard to beat.
Do SOA or CAS Actuaries Earn More?
The industry in which an actuary works plays a significant role in shaping salary expectations. Actuaries can specialize in CAS-related fields (Property & Casualty) or pursue other fields under the Society of Actuaries (SOA) umbrella.
- CAS Fields (Property & Casualty): CAS actuaries working in P&C insurance typically earn slightly higher salaries than their SOA counterparts, reflecting the specialized knowledge required in areas like catastrophe modeling and predictive modeling.
- SOA Fields (Life, Health, Pension, Investments): Salaries in life and health insurance are generally on par with CAS roles at the entry level but may have slightly lower growth trajectories due to market dynamics.
The data below is from the DW Simpson salary survey and shows the average total compensation (salary + bonus) in the US for fully credentialed FCAS and FSA actuaries in different areas of actuarial practice with 5-25 years of experience:
| Years Experience | P&C (FCAS) | Health (FSA) | Life (FSA) | Pension (FSA) |
|---|---|---|---|---|
| 5 | $204,000 | $168,000 | $190,000 | $154,000 |
| 10 | $236,000 | $206,000 | $226,000 | $185,000 |
| 15 | $269,000 | $244,000 | $263,000 | $217,000 |
| 20 | $301,000 | $282,000 | $299,000 | $248,000 |
| 25 | $333,000 | $320,000 | $336,000 | $280,000 |
Overall, CAS actuaries do earn more than SOA actuaries. What track you take in your career will largely depend on where your first full-time actuarial job is. If you receive more than one job offer from different fields, then you have the opportunity to proactively choose whether to pursue a Property & Casualty track with the CAS or one of the SOA tracks. Of course, salary is only one aspect of a career path to consider.
How Much Do CAS Actuaries Earn?
As you gain experience and pass the exams to achieve your credentials such as the Associate of the Casualty Actuarial Society (ACAS) and the Fellow of the Casualty Actuarial Society (FCAS), your salary can grow significantly. These credentials reflect high levels of technical expertise, and they signal to employers that you have the necessary skills to tackle complex actuarial projects. Earning an FCAS can also open up opportunities for leadership and specialized roles.
Below is a breakout of the average total compensation (salary + bonus) for ACAS and FCAS actuaries with different years of experience:
| Years Experience | ACAS | FCAS |
|---|---|---|
| 5 | $153,000 | $204,000 |
| 10 | $185,000 | $236,000 |
| 15 | $217,000 | $269,000 |
| 20 | $250,000 | $301,000 |
| 25 | $282,000 | $333,000 |
As you can see, investing the time to pass your CAS exams and fully earn your FCAS credentials clearly pays off.
What are Starting Salaries for Entry-Level Actuaries?
Starting salaries for CAS actuarial students are highly competitive compared to other professions. As an entry-level actuary, you can expect to earn an annual salary range of around $70,000 to $80,000 (source). Your exact starting salary will depend on factors such as your educational background, geographic location, and the type of company you work in.
When you’re just starting out and considering job offers, it’s important to prioritize the career opportunities, location, robustness of the actuarial student program, and whether a company will be a good fit for you. The difference of a few thousand dollars in salary at the entry level will be outweighed by these other factors. As you pass your exams and earn promotions, your salary will increase significantly compared to the entry level.
How Does the Number of Passed Actuarial Exams Affect Salary?
One of the unique features of the actuarial profession is the direct connection between the number of actuarial exams passed and salary. As you pass more actuarial exams, you will increase your earning potential. If you’re good at math and taking exams, this is a nice benefit of the actuarial profession because you have the direct and clear ability to impact your salary.
For lower-level actuarial exams (Exams P, FM, MAS I, MAS II, …), the salary increase for passing an exam is often around $2,000 – $4,000. The salary increase for upper-level actuarial exams (CAS Exams 5-9) is often around $3,000 – $5,000. Most employers also pay a one-time bonus of $1,000 – $2,000 for passing an exam.
The faster you progress through the exams, the quicker your salary grows. However, balancing work, study, and life is critical to maintaining steady progress.
How Does the Type of Company (Consulting vs. Insurance) Affect Salary?
The type of company an actuary works for – whether it be a consulting firm or insurance company – can also influence their salary.
Actuaries working for consulting firms have the potential to earn somewhat more than those working for insurance companies, particularly for FCAS actuaries. This could be attributed to the varied nature of consulting work, which may involve working on different projects for multiple clients, requiring a broader skill set and often longer working hours. In contrast, actuaries working for insurance companies typically focus on specific areas of practice and the work-life balance is often better.
Overall, the type of company does affect salary, but the more important thing is to find the right fit for you. Salary is only one part of what matters in a job. Make sure to look at the whole compensation package including benefits, along with location, commute time, company culture, work-life balance, etc. Those other things will matter more than a modestly higher salary in the long-term.
Conclusion
Actuarial careers offer excellent earning potential, with opportunities for growth at every stage of the journey. Moreover, the career path offers the unique aspect of direct salary increases for passing exams.
Overall, being an actuary is a great career, especially after earning your FCAS or FSA! It offers a high salary, a good work-life balance, and varied opportunities for roles ranging from reserving and ratemaking, to predictive modeling, catastrophe modeling, reinsurance and more. The rewards—both financial and professional—are well worth the investment of effort to pass the CAS exams and earn your FCAS.
Salary Survey Links
Ezra Penland Actuary Salary Survey
DW Simpson Salary Survey
Actuarial Careers Salary Survey
Reddit 2022 Study Program Survey Results