Thinking of specialising in actuarial pensions? Here's why it could be right for you

The actuarial profession undoubtedly has the potential to be very stressful. Newly qualified actuaries often face the brunt of delivery demands, especially during valuation seasons, transaction activity or other peak times. But in the pensions industry, a certain combination of factors can also make the role particularly fulfilling. Why might pensions be a particularly attractive industry for an actuary? Let’s take a look at some of the main reasons. 

1. A sense of purpose 

Many actuaries tell us that they’re drawn to the pensions industry because it gives them a huge feeling of both professional fulfilment and personal satisfaction. Knowing that their work has a direct impact on pension scheme members, by helping to ensure their financial security after retirement, gives actuaries a tangible sense of purpose. It’s not a faceless corporate they’re serving – it’s a collection of real people with real worries about the future. 

As well as their positive impact, actuaries enjoy the technical complexity of what they do. To ensure they’re financially stable and meet future obligations, pension plans require careful analysis of long-term risks like mortality rates, investment terms and inflation. All this means that technical complexity is one thing pensions work is certainly not lacking. 

2. The collaborative culture 

Communication is a massive part of being an actuary. On a daily basis, actuaries need to explain their work to a variety of stakeholders of various levels, some of whom lack technical knowledge of the actuarial profession. Reframing a potentially complex subject matter in a language the rest of the business can understand is crucial to developing an actuary’s communication and commerciality. 

Meaningful direct interaction with clients from a wide range of backgrounds allows actuaries to build their networks and their knowledge, while laying the foundations for potential future opportunities. At the same time, they enjoy the strong, supportive team dynamic and collaborative culture within many pensions firms. This helps to create a positive environment where they feel secure and supported, and can therefore do their best work. 

3. Variety 

Whether it’s guaranteed minimum pensions (GMP) equalisation, Pension Protection Fund (PPF) assessment work or risk transfer, no two projects are the same. Due to the niche nature of the role and the amount of bespoke work involved, every project requires solid technical and problem-solving skills. Projects are often significant in scope and set against an evolving landscape, perhaps with a legislative importance, meaning pensions work truly keeps actuaries on their toes. This is an intellectual challenge that many actuaries find too hard to resist. 

4. Learning opportunities 

The actuarial profession never stands still, and that certainly applies from a technical perspective. While the likes of PowerPoint and Excel remain as important as ever, there’s an increasing need for actuaries to be proficient in software such as R, Python and VBA. Artificial intelligence is becoming more prevalent by the day, as organisations look to simplify their processes and automate their more formulaic work. 

At the same time, sustainability is an increasingly important consideration in the actuarial process. The long term risks related to climate change and social issues can have a significant impact on organisations’ future financial stability and liabilities. 

All this means that actuaries need to keep up to date with the latest technologies and trends which have a material impact on their role. This might mean they have their work cut out, but it also means they never stop learning. 

Conclusion

If you’re looking for a fulfilling and varied role that gives you constant learning opportunities and a chance to work with a wide range of people, an actuarial role in the UK pensions space might be the right one for you. It’s a challenging role, but by providing all the impact, collaboration and visibility you could ask for, it’s also the kind of challenge you might really enjoy. 

The insights in this article are based on a recent Eames Consulting survey exploring attitudes amongst actuarial professionals in the UK pensions industry. As part of this, we asked pensions actuaries what they enjoy most about working in the industry. To see the full results, please download our UK Pensions Actuarial Workplace Survey here. 

If you’re an actuarial professional looking for your next opportunity in the UK pensions space, I’d love to talk to you about how we can support your career. Please get in touch with me for an informal chat.