Explore commonly used personal finance terms.
An actuarial valuation is an evaluation of a pension plan’s financial health, performed by actuaries to assess its liabilities and funding status. The valuation considers factors such as current assets, expected returns, and future obligations based on actuarial assumptions like employee life expectancy and salary growth. Actuarial valuations ensure that pension plans have sufficient assets to meet future payouts, providing critical data for plan sponsors, regulatory compliance, and long-term financial planning.
