2 answers
Emily
Student
Antwerp, Ohio
3
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What is day-to-day work like as a person working in finance, specifically and acutary?
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2 answers
Donna Weinstein
actuary
16
Answers
Potomac, Maryland
Updated
Donna’s Answer
What your day is like depends on your experience level and the type of company you work for and if you are working in the life, health, retirement, property or casualty, or general risk management fields. What I know best is retirement plans, the types that provide a promised lifetime monthly benefit. Note that such programs aren't as prevalent today as they were when I entered the field in the 1970's. What follows is a description of what a new retirement actuary in training might do in their first couple of years.
When I started my path to becoming a retirement actuary, I spent a lot of time understanding the retirement plan for which we needed to calculate annual contributions. This often involved very complicated and sometimes not very clear plan documents. As I worked with more and more plans, it became easier as I better understood plan design and what was legally required to be included. A great deal of time was spent requesting necessary data to do calculations of the costs (what an employer needed to contribute each year or include on financial statements) or to do a precise calculation of a benefit to be actually paid out . Once data was received, I would spend time reviewing it to make sure it was accurate and all required elements were provided. I would need to make sure it made overall sense and would note inconsistencies with the prior year's information. I would need to create or review the model that was previously used to calculate the present value of the promised benefits and the assumptions upon which those values were based, and then discuss with an experienced actuary, if the model needed revising for new benefits or changing economic or demographic projections. Once the assumptions were set and costs were determined, they needed to be carefully reviewed to understand changes from the prior year and make sure the new numbers were reasonable based on what the changes there had been in provisions, assumptions and demographics. Also, there is a legal framework that must be adherred to in developing contribution levels. When actual benefits for individuals are calculated, they need to be thoroughly checked for consistency with the plan document and that all data elements have been provided and make sense. With larger employers, companies often develop systems to generate benefit calculations. The actuarial staff generally has a role in such a project. These projects can take years to become fully operational, especially when intergrated with data feeds. Contribution results, once completed, are communicated to the client in a formal report (generally also presented and discussed at a meeting). For benefit calculations, a letter documenting the benefit to be paid is sent, often with forms for participant elections. Projects to automate the communication efforts (reports on plan costs or letters on individual benifits) can also involve actuarial staff. From time to time, companies want to look into making changes in their benefit programs. Special design projects are undertaken and a more senior actuary would assist the employer in sorting through their objectives in terms of benefits provided at an acceptable cost. Then more junior actuarial staff would modify the model to calculate the financial impact of the change on employer costs and also develop illustrations of the impact of the change on the plan participants and recommendations on how to communicate any changes.
Often one would work on the same client and plans for several years. I generally thought three years was a good amount of time with the first year being a bit overwhelming, the second year having a good grasp of the case and the third year being very efficient on it and helping others more junior than me learn the case.
When I started my path to becoming a retirement actuary, I spent a lot of time understanding the retirement plan for which we needed to calculate annual contributions. This often involved very complicated and sometimes not very clear plan documents. As I worked with more and more plans, it became easier as I better understood plan design and what was legally required to be included. A great deal of time was spent requesting necessary data to do calculations of the costs (what an employer needed to contribute each year or include on financial statements) or to do a precise calculation of a benefit to be actually paid out . Once data was received, I would spend time reviewing it to make sure it was accurate and all required elements were provided. I would need to make sure it made overall sense and would note inconsistencies with the prior year's information. I would need to create or review the model that was previously used to calculate the present value of the promised benefits and the assumptions upon which those values were based, and then discuss with an experienced actuary, if the model needed revising for new benefits or changing economic or demographic projections. Once the assumptions were set and costs were determined, they needed to be carefully reviewed to understand changes from the prior year and make sure the new numbers were reasonable based on what the changes there had been in provisions, assumptions and demographics. Also, there is a legal framework that must be adherred to in developing contribution levels. When actual benefits for individuals are calculated, they need to be thoroughly checked for consistency with the plan document and that all data elements have been provided and make sense. With larger employers, companies often develop systems to generate benefit calculations. The actuarial staff generally has a role in such a project. These projects can take years to become fully operational, especially when intergrated with data feeds. Contribution results, once completed, are communicated to the client in a formal report (generally also presented and discussed at a meeting). For benefit calculations, a letter documenting the benefit to be paid is sent, often with forms for participant elections. Projects to automate the communication efforts (reports on plan costs or letters on individual benifits) can also involve actuarial staff. From time to time, companies want to look into making changes in their benefit programs. Special design projects are undertaken and a more senior actuary would assist the employer in sorting through their objectives in terms of benefits provided at an acceptable cost. Then more junior actuarial staff would modify the model to calculate the financial impact of the change on employer costs and also develop illustrations of the impact of the change on the plan participants and recommendations on how to communicate any changes.
Often one would work on the same client and plans for several years. I generally thought three years was a good amount of time with the first year being a bit overwhelming, the second year having a good grasp of the case and the third year being very efficient on it and helping others more junior than me learn the case.
Sneha Deb
Tech Consultant
194
Answers
Edison, New Jersey
Updated
Sneha’s Answer
Hey Emily! As an actuary, your day-to-day work is a mix of analytical problem-solving, data modeling, and strategic advising. You’ll often spend time analyzing large datasets, building or refining models to assess risk (like insurance, pensions, or financial forecasting), and working in Excel, SQL, or specialized actuarial software. A typical day might include preparing reports, reviewing assumptions, meeting with stakeholders to explain complex concepts in simple terms, and adjusting models based on new data or regulations. It’s a career that combines math, business insight, and communication, and if you enjoy solving puzzles with real-world impact, it can be incredibly rewarding! Good luck!