actuarial valuation

Actuarial valuation is a process used to assess the financial health of pension plans, insurance policies, or other financial obligations. Actuaries analyze various factors, such as age, life expectancy, and economic conditions, to estimate future liabilities and the necessary assets to meet those obligations. This evaluation helps organizations determine how much money they need to set aside today to ensure they can pay future benefits. Essentially, it's a way to ensure that funds are managed responsibly, promoting long-term financial stability for both individuals and organizations.