In 1995, starting salaries for actuaries averaged about $36,000 for those with a bachelor’s degree, according to the National Association of Colleges and Employers. Insurance companies and consulting firms give merit increases to actuaries as they gain experience and pass examinations. Some companies also offer cash bonuses for each professional designation received.

In 1996, Stuart A. Klugman, Ph.D., of Drake University surveyed colleges and universities to gather information about salaries of entry-level actuarial candidates. Forty-three institutions submitted data on 137 candidates. Actual salary data was given on 87 of these candidates (67 of whom came from five schools). Overall, the study found that an internship and a degree in actuarial science are valuable. Using a simple regression formula on credits alone, the typical salary for a candidate with 60 credits-the equivalent of passing CAS Parts 1 and 2-is $36,523 (standard error $2,994). The average placement rate of the institutions that replied to the survey was 79 percent in 1994 and 82 percent in 1995. Forty-three percent of candidates with degrees from colleges offering courses in actuarial science found jobs with life insurance companies. Seventeen percent with degrees from schools not offering these courses received employment from life insurance companies. Click here to view the full text of Klugman’s 1996 Entry-level Actuarial Job Survey.