Five ways to keep your actuaries

Helping to ensure that pensions can meet future obligations to their beneficiaries, pensions actuaries do some incredibly worthwhile work. Our conversations with them show that for the most part, they have a deep appreciation for the intellectual challenge of their role, and a huge sense of pride for the positive impact they can have both on their clients and on pension scheme members. 

Yet many actuaries are questioning the longevity of a career in defined benefit (DB) pensions. Increasing numbers are moving to insurers, bulk purchase annuity (BPA) teams or broader financial services, and some are even leaving the industry entirely. Why is this? Let’s look at the five main reasons why actuaries might look to move on, and what pensions businesses can do to keep hold of them. 

 1. Clear career pathways 

27% of pensions actuaries say limited career progression opportunities are the biggest challenge they’re experiencing in their current role. My daily conversations and the market movement we’re seeing indicate that many actuaries at the part and newly qualified level are feeling stuck in rigid structures with limited routes to broaden their experience. 

By giving their actuaries a transparent growth path, including clear promotion pathways and development opportunities, pensions businesses can show that there’s a viable long term career at the organisation. Future-proofing your talent also shows them that you’re invested in their careers, which is more likely to engender loyalty. 

 2. Cross-training 

Introducing secondment programmes and rotational opportunities across business lines gives actuaries exposure to different parts of the business, broadens their experience and widens their skills, making them better equipped to handle challenges later on in their careers. Some pensions businesses are giving their actuaries opportunities beyond DB consulting in areas such as collective defined contribution (CDC), insurance, defined contribution (DC), investment and AI. 

3. Flexibility 

Part-qualified to nearly or newly qualified actuaries often face the brunt of delivery demands. The danger of long hours or even burnout is especially high during peak periods, such as valuation seasons or during transaction activity. It’s therefore unsurprising that 23% of actuaries say work-life balance is their biggest challenge. Allowing flexible working and being sensitive to actuaries’ needs outside work is an easy win for pensions businesses. 

4. Reframing pensions work 

Many actuaries are unsure of the sustainability of their career path within pensions, especially given the maturing DB landscape. There’s also a general feeling that the pensions market will start to dwindle in the future, but many employers are not yet addressing this by communicating a clear plan to their employees. 

Showing that there’s a future in the pensions industry is absolutely key to retention. That means transparency on the future of pensions work and the organisation’s long term plan. By realigning traditional actuarial work as commercially relevant and strategically important, through projects focusing on de-risking, endgame planning and broader financial modelling, companies can show their actuaries how attractive the pensions industry can be. 

5. Increasing compensation  

It’s an obvious one, but that also makes it easier to underestimate its importance. Salary is the number one motivator of career moves for 58% of pensions actuaries. Part-qualified and newly qualified actuaries are increasingly aware of their market value within the pensions industry, particularly with many firms hiring at this level. This has led to increased compensation expectations. Many employers are responding by actively working to make their remuneration more attractive, in line with other exciting growth areas within the market – and crucially, in line with their competitors. 

Conclusion 

UK pensions businesses are in the very fortunate position of working with talented and invested actuarial professionals who find their work rewarding and enjoy making a difference. But that doesn’t mean they’ll stick around forever. To have the best chance of retaining them, employers need to mirror their actuaries’ commitment by investing in their careers, offering the right rewards and flexibility, and being transparent on the future of the pensions industry – otherwise, they risk letting this talent go to waste. 

The insights in this article are based on an Eames Consulting survey exploring attitudes amongst actuarial professionals currently working in the UK pensions industry. For the full results, please download our UK Pensions Actuarial Workplace Survey here. 

If you’re a pensions business looking for advice on retaining your actuarial talent, or you’re an actuarial professional looking for your next opportunity, please get in touch with me for an informal chat.