Actuarial Assumption

Business, Legal & Accounting Glossary

Definition: Actuarial Assumption

Actuarial Assumption

Full Definition of Actuarial Assumption

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.

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Modern Language Association (MLA):
Actuarial Assumption. Payroll & Accounting Heaven Ltd.
December 04, 2021
Chicago Manual of Style (CMS):
Actuarial Assumption. Payroll & Accounting Heaven Ltd. (accessed: December 04, 2021).
American Psychological Association (APA):
Actuarial Assumption. Retrieved December 04, 2021
, from website:

Definition Sources

Definitions for Actuarial Assumption are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 1 Views.