How to Become an Actuary: Complete 2026 Guide
Actuaries use mathematics, statistics, and financial theory to measure and manage risk. They consistently rank among the top careers in the United States for job satisfaction, salary, and work-life balance. This guide covers every step from education through full credential.
Step 1: Get the Right Education
While no specific major is required, the most common paths into the actuarial profession are degrees in actuarial science, mathematics, statistics, economics, or finance. What matters most is a strong foundation in calculus, probability, and statistics, because these subjects form the core of the first actuarial exams.
Many universities offer actuarial science programs that align coursework with exam topics. These programs often include courses in financial mathematics, regression, life contingencies, and loss models. Some are accredited by the SOA through their University and College Accreditation (UCAP) program, which allows students to earn Validation by Educational Experience (VEE) credits alongside their degree.
Step 2: Pass the Preliminary Exams
The preliminary exam sequence is where most aspiring actuaries spend the first several years of their career. There are up to 7 preliminary exams, depending on your chosen pathway:
Probability distributions, expected values, conditional probability. Typically the first exam candidates attempt.
Time value of money, annuities, bonds, loans, and introductory derivatives.
Regression, GLMs, time series, decision trees, and principal components.
Loss models, credibility, ratemaking, and reserving for P&C insurance.
Survival models, life insurance, annuities, premiums, and reserves.
Probability, mathematical statistics, regression, and Bayesian methods (CAS pathway).
GLMs, credibility, loss reserving, and predictive modeling (CAS pathway).
Each exam requires roughly 300 to 400 hours of focused study. Most candidates study for 3 to 6 months per exam while working full time. Passing 2 to 3 exams before graduation significantly improves your chances of landing your first actuarial job. Check the 2026 exam schedule to plan your sittings.
Step 3: Choose SOA or CAS
After passing the shared preliminary exams (P, FM, and one of SRM or MAS-I), you will choose between the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS):
SOA Path
Focuses on life insurance, health insurance, pensions, retirement benefits, and finance.
Credential track: ASA (Associate) then FSA (Fellow). Fellows specialize in areas like Corporate Finance, Health, Life, Retirement, and Quantitative Finance.
CAS Path
Focuses on property and casualty insurance: auto, homeowners, commercial, workers comp, and reinsurance.
Credential track: ACAS (Associate) then FCAS (Fellow). Work involves ratemaking, reserving, catastrophe modeling, and enterprise risk management.
Neither path is inherently better. Your choice should reflect the type of insurance work you find most interesting. Many candidates decide based on their first internship or entry-level position. For a detailed comparison, see our complete SOA vs CAS guide.
Step 4: Start Working
Unlike many professions, actuaries begin working before completing all their exams. Most employers hire entry-level actuarial analysts who have passed 2 to 3 preliminary exams. Major employers include insurance companies, consulting firms, government agencies, and financial institutions.
The actuarial profession is known for strong employer support during the exam process. Most employers provide paid study time (typically 100+ hours per exam), exam fee reimbursement, bonuses for each exam passed ($1,000 to $3,000+ per exam), and study material allowances. This support makes it financially viable to continue the exam process while building your career.
Step 5: Earn Your Credential
The path to full credential involves several components beyond preliminary exams:
- Validation by Educational Experience (VEE): Three topics (Economics, Accounting and Finance, Mathematical Statistics) completed through university coursework or approved alternatives.
- Associateship-level exams: Advanced technical exams specific to your chosen pathway and specialty track.
- Fellowship-level exams: The final, most advanced exams covering specialized topics in your practice area.
- Professional development: Modules, courses, and experience requirements that demonstrate readiness for senior professional responsibilities.
Actuarial Salary by Experience Level
| Level | Exams Passed | Typical Salary Range |
|---|---|---|
| Entry-Level Analyst | 1 to 2 | $60,000 to $80,000 |
| Actuarial Analyst | 3 to 4 | $75,000 to $100,000 |
| Associate (ASA/ACAS) | All prelims + associateship | $90,000 to $130,000 |
| Senior Associate | ASA/ACAS + experience | $110,000 to $160,000 |
| Fellow (FSA/FCAS) | All exams | $150,000 to $250,000+ |
| Chief Actuary / VP | Fellow + leadership | $200,000 to $400,000+ |
Salaries vary by geography, company size, and specialization. Consulting actuaries and those in high cost-of-living areas tend to earn more. Each exam passed typically results in a raise, making the exam process financially rewarding at every stage. For a deeper breakdown, see our complete actuarial salary guide.
Timeline: How Long Does It Take?
A typical timeline looks like this:
- Year 1 to 2 (college or early career): Pass Exam P and Exam FM. These two exams open the door to entry-level positions.
- Year 2 to 4: Pass remaining preliminary exams while working. Most employers provide study time. Complete VEE credits.
- Year 4 to 6: Earn ASA or ACAS designation. This is the first major credential milestone.
- Year 6 to 10: Complete fellowship exams and requirements. Earn FSA or FCAS.
Some candidates move faster and some slower. The key is consistent progress. Passing one exam every 6 to 9 months while working is a realistic pace for most candidates.
Frequently Asked Questions
How long does it take to become an actuary?
Most actuaries earn their credentials over 7 to 10 years. You can start working as an actuarial analyst after passing 2 to 3 preliminary exams, which typically takes 1 to 2 years of study.
What degree do you need to become an actuary?
There is no required major, but most actuaries hold a degree in actuarial science, mathematics, statistics, or a related quantitative field.
How much do actuaries earn?
Entry-level: $60,000 to $80,000. Associates (ASA/ACAS): $90,000 to $130,000. Fellows (FSA/FCAS): $150,000 to $300,000+.
What is the difference between SOA and CAS?
The SOA focuses on life, health, pensions, and finance. The CAS focuses on property and casualty insurance. The first three preliminary exams are shared.
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