DEFINITION of 'Actuarial Adjustment'

A revision made to reserves, premiums and other values based on a company's actual loss experience as well as expenses and expected benefits to be paid.

BREAKING DOWN 'Actuarial Adjustment'

In pension arrangements, actuarial adjustments are made to the retirement benefits when an individual retires before or after normal pension age. The most common actuarial adjustment is an actuarial reduction made to retirement benefits when a member retires before the normal pension age, which takes into consideration the additional years the member is expected to receive benefits.

RELATED TERMS
  1. Actuary

    A professional dealing with the assessment and management of ...
  2. Actuarial Rate

    Actuarial rate is an estimate of the expected value of future ...
  3. Actuarial Age

    An individual's life expectancy based on calculations and statistical ...
  4. American Academy Of Actuaries - ...

    A group that provides analysis to aid in public policy creation, ...
  5. Actuarial Basis Of Accounting

    A method used in computing the periodic payments that a company ...
  6. Credibility Theory

    Tools, policies, and procedures used by actuaries when examining ...
Related Articles
  1. Financial Advisor

    Career Advice: Financial Analyst Vs. Actuary

    Read an in-depth comparison between financial analysts and actuaries, what it's like to work as each and how to determine which is best for you.
  2. Personal Finance

    The Top 5 Skills Every Actuary Needs

    The actuary profession is growing fast. Here's a look at the majors and top skills one needs to become a successful actuary.
  3. Personal Finance

    A Day In The Life Of An Actuary

    We take a look at the typical workday of three actuaries who work for different types of companies and who are at different stages in their careers.
  4. Retirement

    Retirement Plans From Around The World

    How does the rest of the world stack up against the U.S. when it comes to planning and saving for retirement?
  5. Retirement

    How the Congressional Retirement Plan Compares to the Average

    There are more retirement plan options for a member of United States Congress than for the average average citizen.
  6. Retirement

    Pension Plans: Pain Or Pleasure?

    Employees have a love/hate relationship with this retirement option.
  7. Managing Wealth

    How Pensions, Social Security Differ

    Both pensions and Social Security provide an income stream to retirees, but they differ widely on how they're structured and funded. Here's the lowdown.
  8. Financial Advisor

    How to Advise Clients with Frozen Pensions

    Financial advisors are on the front line in advising clients impacted by a frozen pension. Here's what they need to consider.
  9. Retirement

    Will Low Retirement Ages Last Forever?

    We tell you which countries have low retirement ages and how does it affects their economy.
  10. Retirement

    New 401(k) Pension Rollover Rule: Pros and Cons

    Is the new rule allowing participants to roll their 401(k) balances into pensions a good idea?
RELATED FAQS
  1. When am I eligible to receive Social Security benefits?

    Understand when you are eligible to begin collecting Social Security retirement benefits and how retiring at different ages ... Read Answer >>
Hot Definitions
  1. Leverage

    1. The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment. ...
  2. Trumponomics

    Trumponomics is a term for the economic policies of President Donald Trump.
  3. Universal Health Care Coverage

    An organized healthcare system that provides healthcare benefits to all persons in a specified region. Many countries, such ...
  4. Davos World Economic Forum

    The annual meeting of the World Economic Forum hosted at Davos—a small ski town in Switzerland—in January each year is among ...
  5. Smart Home

    A convenient home setup where appliances and devices can be automatically controlled remotely from anywhere in the world ...
  6. Efficient Frontier

    A set of optimal portfolios that offers the highest expected return for a defined level of risk or the lowest risk for a ...
Trading Center