We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Is an Actuarial Report?

Mary McMahon
By
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

An actuarial report is a statement on the current and future conditions of a fund, like a pension or insurance pool to determine whether it is on track to meet the needs of people depending on it. In the case of public funds like pensions for government employees, actuarial reports are available to members of the public on request. Privately-held funds have internal reports that may not be accessible. This depends on the fund and the company's status. In the case of a publicly owned company, actuarial reports may be part of the public filings the company must make to comply with regulators.

This document must be prepared by an actuary. Actuaries have special training in evaluating risks, compiling statistics, and evaluating demographics. The actuary will look at the stated purpose of the fund and collect information about the contributors to develop an opinion on how much money the fund needs and the amount it will have if contributions and disbursements follow expected patterns. Looking at public employee pensions, for example, an actuary would see the amount current employees deposit into the fund, how much the fund earns through investments, and what it pays out to currently retired employees who are entitled to benefits.

The actuarial report will make projections about future performance on the basis of the available data. An actuary may note, for example, that a boom in retirees may have a negative impact on a pension fund and could create a situation where there is not enough in the fund to meet the need. An actuarial report may provide suggestions on addressing issues it identifies. They can also evaluate the outcome of losses and bad investments to help the fund administrators develop a plan for stabilizing the fund.

Actuaries need as much information as possible to develop accurate and complete actuarial reports. This includes detailed data on projected future needs. If this information is not correct, the statement may be inaccurate, and it will be less useful to administrators, investors, and concerned members of the public. Actuarial reports can be valuable documents when they are accurate, as they may offer warning signs about economic problems that are not visible yet, but will become an issue in the future.

A fully complete actuarial report will bear the signature of the actuary who prepares it. By signing, he indicates the accuracy of the document and testifies that the information is as complete as possible. If information in the actuarial report is fraudulent, there may be legal penalties.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a SmartCapitalMind researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Discussion Comments
Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

Learn more
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.