Explore commonly used personal finance terms.
Actuarial assumptions are estimates about future events, such as mortality rates, retirement age, or interest rates, used by actuaries in calculating pension or insurance obligations. These assumptions impact funding requirements, premium calculations, and risk management for insurance companies and pension funds. Actuarial assumptions are essential in setting aside sufficient reserves, ensuring financial stability for policyholders or beneficiaries in the long term by forecasting obligations and setting premiums accurately.
