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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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.