The Path to Becoming an Actuary: Duration and Best Undergraduate Majors

Transitioning from university to becoming a certified actuary is a journey that varies greatly in duration. While some have achieved their goal within a few years, others have stretched the process to decades. Understanding these timelines and choosing the right path through undergraduate studies can significantly impact your professional trajectory.

How Long Does it Take to Become an Actuary?

The duration to become an actuary hinges largely on the specific requirements of your chosen career path. If we measure this duration from university graduation and define an actuary as a Fellow of the Society of Actuaries (FSA), the range can be quite wide. Historically, some accomplished the FSA in as little as 2 years, though this was more common decades ago. In my experience, a 4 to 6-year period was the norm, with some taking up to 20 years or more. As the syllabus evolves, the time it takes might also fluctuate, but generally, it falls within that broad spectrum.

Choosing the Right Undergraduate Major

When it comes to the academic background, the key is to have a strong foundation in mathematics, particularly in probability and statistics. Many potential actuaries major in actuarial science, mathematics, or statistics, as these disciplines are crucial for the exams and practical aspects of the job. However, the actual major you choose is less critical than your proficiency in these areas.

The Exam Sequence

The journey through the actuarial exams is notoriously challenging. Only about 10% of those who begin the sequence manage to complete it. The exams progressively become longer and more demanding, with a growing need for extensive preparation. Additionally, the competitive arena becomes increasingly tough, with the lower-level exams weeding out those who are not fully committed. The fastest path often involves passing one exam at a time, but some achieve this more quickly by taking multiple exams concurrently.

While some people take nearly two decades to finish the exams, many choose to stop or switch to other professions. It is crucial to think carefully before embarking on this path, as there are higher-paying alternatives available in fields like high finance, entrepreneurship, and even more stable professions like law and medicine, and engineering.

Starting an Actuarial Career vs Becoming a Full Member of an Actuarial Society

There are two primary interpretations of the phrase "be an actuary." One is to work in an actuarial job, which can be achieved with a bachelor’s degree and applying for positions. The other is to become a full member of one of the actuarial societies, which typically takes 5 to 7 years. This timeline is based on the distribution of individuals in the population pursuing this credential.

For those starting this path early, actuarial degrees or majors in mathematics, statistics, or economics can provide a solid foundation. Studying actuarial science explicitly is one option, but it is not the only one. Some universities offer actuarial science as a major, while others incorporate it as a specialization within another major, such as statistics or applied math. However, for most people, a more general major in a useful subject is the better choice. My personal experience suggests that a flexible, quantitative background, such as economics and math, offers broader education and better options when an actuarial career doesn’t work out. Employers don’t appear to favor people with actuarial science degrees, and my time in the field did not involve many individuals with these degrees, except for my first boss, who didn't stay long.

Conclusion

Actuarial science is a career worth considering for those passionate about statistics, probability, and finance. While it requires dedication and hard work, it can also offer rewarding and lucrative opportunities. However, it’s essential to weigh the potential benefits against other career paths, as there are many equally valuable and perhaps more straightforward alternatives.