If you are deciding between majoring in statistics or actuarial science, you might want to know more about what each major has to offer. This post will show you the key facts about each major and help you to decide which would be a better degree for you.
Quick overview:
| | Actuarial science | Statistics |
| Average pay | $67,014 | $69,767 |
| Ease of finding a job | Moderate | Moderate/Good |
| Types of jobs you can qualify for | Actuary Actuarial analyst Financial analyst Actuarial analyst Data analyst Actuarial associate | Data analyst Data scientist Software engineer Financial analyst Actuarial analyst |
| Difficulty of the major | High | High |
| Key things to note | Can be difficult to get an actuarial job at the entry level. Specialized for the actuarial career path. This makes it slightly easier to get an acturial job but harder to get jobs from other fields. Can improve your job prospects by getting a minor in another field such as computer science. | More general than an actuarial degree. This means the degree should qualify you for a wider range of jobs. However, you should take classes related to the type of job you are interested in. Very employable if you combine it with a more applied minor such as computer science. Also employable if you combine it with programming and data analysis skills, especially in Python. |
Source for statistics salary and jobs
As you can see from the table, there are many similarities between the two degrees. However, there are many things to consider when choosing between the two degrees.
Details about a statistics degree
Below are some key details about the statistics major.
Current pay
The Bureau of Labor Statistics predicts that the demand for mathematicians and statisticians will rise by 33% by 2026. This is mainly due to the surge in data that companies have been receiving in recent years that they need people with mathematical and statistical skills to make sense of.
According to Payscale, the average pay for someone with a bachelor’s in statistics is $69,767.
Something to consider is that many of the more statistical and well-paid jobs, such as a data scientist or machine learning engineer, will often require a master’s degree.
Types of jobs the degree will qualify you for
Since statistics is used in many different fields, a stats degree will open you up to many different job opportunities.
However, many of the jobs that stats majors tend to seek such as a quantitative researcher or machine learning engineer often require a master’s degree (but not always). They can also require more specialized knowledge that you might not get in a statistics degree. This is why it would help to make sure to choose your classes according to the job you are most interested in.
Examples of jobs that you could qualify for with a master’s in stats could include:
- Machine learning engineer
- Data scientist
- Quantitative researcher
With that being said, even with just a bachelor’s degree there will be many different jobs that you will qualify for.
Examples of jobs that you could qualify for with a bachelor’s in stats could include:
- Financial analyst
- Insurance underwriter
- Data analyst
- Software engineer
- Market researcher
- Actuary
However, statistics is a general degree that is not specific to a certain type of job in the way something such as computer science is. This means that you should take courses from the field that you want to enter and do internships and projects in that field as well in order to be competitive when seeking a job.
For example, many stats majors go into software engineering after graduation. If you want to qualify for software engineering jobs then make sure to take a data structures class and an algorithms class and try to get some internships as a software engineer while in college.
Another popular path for statistics majors to take is of data science. In that case, it would help to take classes related to machine learning, data analysis and programming.
Before choosing your electives I would strongly recommend that you consider what you want to do after college and make sure to take classes related to that.
With that being said, there are some people that have gotten data science and machine learning jobs with just a bachelor’s. It would greatly improve your chances if you were to make sure to complete machine learning and data science projects and to do internships in those fields as an undergrad. It would also help to take computer science classes in your electives, especially data structures and algorithms.
Types of classes you will study
As a statistics major you can expect to take the following classes:
Differential calculus
Integral calculus
Multivariate calculus
Linear algebra
Discrete math
Probability
Statistics
Mathematical statistics
In addition, you will be able to choose more specialized statistics classes as well as classes from related disciplines such as mathematics and computer science.
How difficult it is as a major
The statistics major is generally considered as being a difficult major. Some of the more advanced classes can be proof-based which are usually much harder than the more computational classes but you might not have to take those classes depending on your specific program. When compared with an actuarial degree, you can expect statistics to be of a similar difficulty.
Some things to consider about the major
A statistics degree can open up many different possible avenues for yourself and can be a very good degree when combined with a more applied minor. This is because the statistics taught in a stats major is useful in a wide variety of fields but you will need to supplement it with some field-specific coursework so that you are able to show that you can apply the statistics to those fields.
A very good combination would be to major in statistics and to minor in computer science. Doing this would open you up to job roles such as data science, machine learning engineer, data analysis and software engineering.
More details about the statistics major
I have written more about how to do well in a stats major here and I have written more about whether or not a stats degree is worth it here.
Details about a degree in actuarial science
Details about a degree in actuarial science.
Average pay
According to Payscale, the average pay of someone with a degree in actuarial science is $67,014. According to the BLS, the median pay of an actuary was 108,350 in 2019. The BLS also reports that the number of actuary jobs is expected to grow by 18% by 2029 which they say is much higher than the average across all jobs.
However, something to consider, is that it can take many years, after graduating, to become an actuary since there will be a number of additional exams to pass. Also, the job market at the entry level is competitive.
Jobs
A degree in actuarial science will be specialized towards becoming an actuary. This is good if you want to be an actuary. However, it can mean that it will make it more difficult for you to get jobs in other fields that you could have qualified for with a major such as statistics.
Also, you can still get a job as an actuary without an actuarial degree. Degrees such as statistics, mathematics and applied mathematics can be just as competitive for the job role.
However, there are many skills that you will learn in the major that will still allow you to qualify you for other job roles. This is mainly because you will be learning a lot about statistics. You should also learn how to program in Python, R and how to be proficient in Excel. This should help qualify you for “analyst” type job roles.
Jobs that you could get with a degree in actuarial science could include:
Actuary
Actuarial analyst
Financial analyst
Actuarial analyst
Data analyst
Actuarial associate
Getting a minor in an applied field, such as computer science, could also help to broaden your job opportunities.
Difficulty
The major will involve a lot of mathematics, probability and statistics. As a result, the major is not an easy major. When compared with a statistics degree, you can expect it to be of a similar difficulty.
Types of classes
The major will have you take courses from a number of different disciplines. Required classes you can expect to take will include:
- Calculus
- Linear algebra
- Two courses in calculus-based probability and statistics
- Computer science
- Economics
- Finance
- Business
- Actuarial science classes as available
Things to consider
If you are interested in becoming an actuary, getting an actuarial degree might not be a requirement. Instead, it might be more appropriate for you to get a related degree, but to make sure to take the necessary classes to become an actuary and to make sure to complete the necessary actuarial exams while an undergrad.
It might be the case that, half-way through your time as an undergrad, you will decide that you do not want to be an actuary. If you major in a more general quantitative subject such as math or statistics, it should be easier for you to transition towards a different field than with an actuarial major. If you do decide to major in a more general field, it will still be important to choose more employable classes and to complete personal projects so that you can be more competitive for specific jobs.
Something to be aware of is that actuarial science will focus more on applying traditional statistics techniques to smaller datasets. However, each year companies are acquiring larger and larger datasets. This is making machine learning techniques used on large datasets, in data science, more and more relevant each year.
Machine learning and big data is getting incorporated more into actuarial degrees and the exams. However, it would still help a lot to make sure to learn python, manipulation of big datasets using things such as the Pandas library and machine learning. So, that you can also be competitive for data science type roles.
One more thing to be aware of is that actuarial careers can have good job satisfaction because they have good pay, moderate working hours and low stress. However, they also tend to have low job meaning since most of the jobs will involve helping already wealthy people earn more money. Alternative careers, such as in data science, can allow you to have a more positive socially impactful role.
Reasons to choose a statistics degree
When compared with a degree in actuarial science, you can expect a statistics degree to qualify you for a wider range of jobs. This should help you when looking for entry-level jobs since you will have a wider range of potential jobs to qualify for.
With that being said, being a general degree can make it difficult for you to qualify for specific jobs. With that being the case, it would help a lot to make sure to take classes related to the type of job that you are interested in.
Currently, a very popular job among statistics majors is data science. If that is what you are interested in, it would help to make sure to learn programming in R and Python, data analysis, computer science and machine learning. It would also help to get internships, whilst an undergrad, during the summer.
An additional way to improve your job prospects would be to minor in another degree that also has good job prospects such as computer science. Doing this could help you to qualify for more programming type roles and could help you when applying to graduate school for things such as machine learning or computer science.
Reasons to choose an actuarial degree
Actuarial jobs are commonly rated as some of the best jobs you can get. If you are absolutely set on becoming an actuary then getting a degree in actuarial science would be appropriate. In this case, it would help to try to minor in something else such as computer science since this will help to reduce your risk if you are not able to find an entry-level job as an actuary.
However, if you are not absolutely sure that you want to become an actuary, it would likely be a better option to get a related degree such as statistics but to make sure to take the relevant classes to become an actuary.
