Actuary or Investment Banking: Which Career Path is Right for You?

When you're staring down the career crossroads, "actuary or investment banking" might pop up as two intriguing options. Both promise lucrative paychecks and prestige—but which one fits you better? Let’s break it down.

What Does an Actuary Do?

Actuaries are the number crunchers behind big decisions. They evaluate risks, crunch probabilities, and help companies plan for the future. If you love math, statistics, and problem-solving, you’ll thrive in this role.

Here’s the vibe:

• You’ll analyze risk: Insurance companies, pensions, and finance firms depend on actuaries to figure out what’s risky and how to manage it.
• You’ll need credentials: Becoming an actuary means passing a series of tough exams, like the SOA or CAS certifications.
• Work-life balance is strong: Most actuary jobs offer consistent hours with high salaries.

What Does an Investment Banker Do?

Investment bankers make deals happen. They advise on mergers, manage IPOs, and ensure big money keeps moving. This career screams fast-paced, high-pressure, and rewarding (if you can handle it).

Key takeaways:

• It’s about deals: You’ll help clients buy, sell, or raise capital for businesses.
• Hours are intense: Late nights and weekends are standard, especially when a deal is closing.
• No exams, but tons of hustle: Unlike actuaries, investment bankers don’t need certifications—but networking, an MBA, or Ivy League connections can give you a huge leg up.

Actuary vs. Investment Banking: Pros and Cons

Here’s how they compare on major points:

Paycheck Potential

• Actuary: Competitive salary (~$100k+ with experience) but builds gradually.
• Investment Banker: High earning potential ($150k–$300k early) but tied to grueling hours.

Work-Life Balance

• Actuary: Favorable hours—9-to-5 is common.
• Investment Banker: Long hours are the norm.

Job Security

• Actuary: High demand and steady growth make this a recession-proof job.
• Investment Banker: Cyclical—great during booms but less stable in downturns.

How to Decide Between Actuary or Investment Banking

Ask yourself:

1. Do you love numbers and long-term planning? Actuary might be the fit.
2. Do you thrive in high-pressure, fast-paced environments? Investment banking’s your jam.
3. What lifestyle do you want? Steady vs. hustle is a big factor.

Pro Tip: If you're still unsure, explore internships in both fields. A few months immersed in each will give you clarity.

Get Hired as an Actuary

If you’re leaning toward actuarial science, I’ve got you covered. Check out Acturhire—your go-to for actuarial job listings. Whether you're just starting or a seasoned pro, we’ve got the roles to match your skills and ambitions.

FAQs

1. Which career is harder to get into?
Investment banking typically requires elite networking and education, while becoming an actuary demands passing challenging exams.

2. Can actuaries switch to investment banking?
Yes! Some actuaries transition by leveraging their financial expertise, though it’s less common.

3. Is investment banking worth the stress?
For some, yes—it’s lucrative. But if you value balance, actuary work might be better.

When you’re weighing actuary or investment banking, it all boils down to your personality and goals. Whether it’s the calm consistency of actuarial science or the adrenaline rush of banking, there’s no wrong answer—just the one that feels right for you.

Need an actuary job to get started? Check out Acturhire today!

‍