actuarial assumption Definition

actuarial assumption

Definition

In the case of retirement plans, an estimate made for the purposes of calculating benefits. Possible variables include life expectancy, return on investments, interest rates, and compensation. By calculating the possible payout of benefits, the actuary can determine what premium to charge and what amount the insurance company should set aside as readily available cash or liquid securities.

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback\@\investorguide.com

Related Terms

actuarial equivalent -

Related Terms on BusinessDictionary

actuarial gain or loss

Popular 'Retirement' Terms

annuity
OASDI
deferred compensation
Social Security
IRA

qualified retirement plan
annuitant
non-qualified retirement plan
liquid net worth
401(k) plan

actuarial assumption in the news

Tools

actuarial assumption is ...

... part of the Retirement subject.

Nearby Terms

active portfolio strategy
activity
activity-based pricing
actual market
actuals
actuarial assumption
actuarial equivalent
actuarial evaluation
actuary
ad valorem
Adam Smith

Search volume for actuarial assumption

Review the unprecedented moves the Fed & Treasury took to bring the financial markets back from the precipice