Actuarial Adjustment

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 Age

    An individual's life expectancy based on calculations and statistical ...
  3. Government Actuary

    An employee of the U.K. government who works for the Government's ...
  4. Actuarial Equivalent

    Actuarial equivalent is generally used for applying some measurement ...
  5. Actuarial Service

    Method by which corporations determine, assess and plan for the ...
  6. Actuarial Cost Method

    A method used by actuaries to calculate the amount a company ...
Related Articles
  1. Professionals

    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.
  2. 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.
  3. Managing Wealth

    Career Advice: Accounting Vs. Actuary

    Read about what life is like as an actuary or as an accountant, how the two careers are different and how to decide which is best for you.
  4. Financial Advisor

    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.
  5. 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?
  6. Retirement

    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.
  7. 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.
  8. 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?
  9. Retirement

    How Safe Is Your Pension?

    A 2014 law permits some private pension plans to reduce benefits. How to figure out if your retirement income is endangered.
  10. Retirement

    6 Benefits Of Retiring Later

    Early retirement is a pipe dream for most Americans. But the reality is, there are some perks to stretching out the lifespan of your career.
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 >>
  2. What is the maximum earned income a person can make while receiving OASDI without ...

    Is there an age?  ... Read Answer >>
  3. Can I draw my deceased spouse's benefit at age 62?

    My husband passed away in 2012. He was 60. He was on social security disability. I will be turning 62 years old in August ... Read Answer >>
  4. Can I retire with full benefits?

    If I partially retire at 62 years old and still work part time, can I fully retire at 66 with full benefits? ... Read Answer >>
  5. The company I am receiving my pension plan from has just filed bankruptcy. Could ...

  6. What will happen to my father's pension if he never added a second beneficiary?

    My dad worked at a company for 40 years where he had a pension. My mom passed away about a year after ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center