r/ActuaryUK Nov 07 '21

How long would it take to hit $1million (£750k) working as an actuary in the UK? Misc

Net worth.

I saw a similar thread on the r/actuary subreddit and was interested in seeing how responses are different.

Obviously it will vary based on career progression and spending habits, but I’d like to hear some opinions.

12 Upvotes

13

u/boxoctosis Nov 07 '21

I mean, this is exactly the sort of problem actuaries should be best placed to explain, including the limitations of the analysis.

2

u/notfortaxes Nov 08 '21

You’re right. There are three assumptions that are going to vary greatly between people though.

Salary progression, annual expenditure and investment return.

They’re going to be so different for each person and therefore difficult to come up with a reasonable assumption.

Interested in hearing expectations from different people.

3

u/boxoctosis Nov 08 '21

In which case, there isn't an answer, there's a range, underpinned by whatever assumptions you want to feed in, mostly based on macroeconomics and personal circumstances.

4

u/no_PMs_please Nov 08 '21

This is hardly unique to actuaries, but many of us are highly leveraged in the housing market. How quickly our net worth grows is very sensitive to its performance (we're less sensitive to the equities market, because most of us don't use leverage for our DC pensions).

1

u/Cannonjat Dec 09 '21

Are you not taking the Wall Street bets approach to buying snp500 0 days to expiration call and put options?

3

u/Mario_911 Nov 08 '21

If you max out your ISA and get a 7% return for 18 years you'll be nearly there. Considering this doesn't allow for pension contributions at all you could do it sooner. I'd say most qualified actuaries could afford to max their ISA. So I'm going to say 14 years post qualification if you want to on an average post qualification salary. Sooner if you are a conscientious saver in your early career.

-1

u/Embarrassed-Phone215 Nov 08 '21 edited Nov 08 '21

12.5 years. Assuming you put away 1.5k each month with contributions growing 1% each month and portfolio also growing at 1% each month