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Understanding Loss of Future Earning Capacity

Injury Lawyer PDX, LLC July 26, 2025

Personal injury cases in Oregon can involve many different types of damages, but one of the most significant and often misunderstood areas is the concept of loss of future earning capacity. This can be a complicated element of a claim, as it involves projecting the long-term financial consequences of an injury and its impact on an individual's ability to earn a living in the future. 

Understanding this concept and how it applies to your personal injury case can be critical in making sure that you receive fair compensation for all aspects of your injury. 

Working with a Portland personal injury attorney can help you properly assess the long-term impact of your injury and make sure that all aspects of your financial losses are considered.

Let’s explore what loss of future earning capacity is, how it’s calculated, and the benefits of working with an injury lawyer to help you manage this process.

What Is Loss of Future Earning Capacity?

Loss of future earning capacity refers to the diminished ability of an individual to earn income in the future due to an injury sustained in an accident or event. 

Unlike lost wages, which only cover the income lost during the period immediately following the injury, loss of future earning capacity takes into account the long-term impact of the injury on a person’s ability to work at the same level or in the same capacity as before the incident.

For instance, if an individual suffers a severe back injury that prevents them from returning to their previous job, they may not be able to earn as much money in the future, either due to physical limitations or the need to change careers. This reduction in future earnings is what is classified as a loss of future earning capacity.

The key difference between lost wages and loss of future earning capacity is the duration and scope of the impact. While lost wages cover the immediate impact on income, loss of future earning capacity looks at the long-term financial consequences that may span decades.

The Factors That Affect Future Earning Capacity

Several factors contribute to how a personal injury affects an individual’s future earning potential. These include:

  • The nature of the injury: Some injuries, such as brain damage or spinal cord injuries, can have a profound impact on an individual's ability to work, while others may only have temporary effects.

  • The person’s age: A younger person may experience more severe long-term earning capacity losses due to a longer career ahead, while an older individual may have a shorter duration of income loss to consider.

  • The individual’s job: If the person worked in a physically demanding job, such as construction or manual labor, they may face a more significant reduction in future earning capacity than someone with a desk job.

  • The availability of alternative work: An individual may need to switch to a different type of job or even retrain for new employment, and the feasibility of this can affect how much they are able to earn moving forward.

These factors, among others, play a crucial role in determining the extent of the loss and should be carefully evaluated by a personal injury attorney when building a case for compensation.

How Is Loss of Future Earning Capacity Calculated?

Calculating loss of future earning capacity isn’t as simple as adding up lost wages. It involves a more complicated process that requires detailed analysis and projections. The calculation considers multiple variables, including:

  • The person’s pre-accident earning level: The starting point for any future earning capacity calculation is the individual’s previous income before the injury. This serves as a baseline for determining how much they were capable of earning.

  • The nature and severity of the injury: A medical expert will typically assess the severity of the injury and its long-term effects, which can help project how much the individual will be able to earn in the future.

  • The individual’s life expectancy: The duration for which the injury will impact the person’s ability to earn is another factor. The longer the impact, the greater the loss of future earning capacity.

  • Economic experts: Economists and vocational experts are often employed in personal injury cases to provide opinions on how much a person can reasonably expect to earn in the future, given their current condition.

Once these factors are considered, a personal injury attorney will work with experts to create a financial model that projects the future loss of earnings. This model will consider inflation, career growth, and other economic factors that may influence earning potential over time.

Examples of Calculating Future Earning Capacity

To illustrate, let’s consider a case where an individual who was 30 years old and earned $50,000 annually prior to an injury can no longer work in their previous capacity due to permanent physical restrictions. 

The individual may be forced to take a lower-paying job that only brings in $35,000 annually. Over the next 30 years of their career, this results in a significant financial shortfall. In this case, the difference of $15,000 per year over 30 years could represent the loss of future earning capacity.

Why Work With a Personal Injury Attorney?

The benefits of hiring a personal injury attorney to handle your case, especially in situations involving complicated damages like future earning capacity, cannot be overstated. Below are just a few reasons why working with a personal injury attorney is essential:

  • Knowledgeable guidance: Personal injury law is complicated, and understanding how to approach a case involving loss of future earning capacity requires a deep understanding of the process. An attorney can guide you through the entire process, from gathering evidence to presenting your case.

  • Comprehensive case preparation: An experienced attorney will make sure that your case is thoroughly prepared, with all relevant medical, economic, and vocational information to back up your claim.

  • Maximizing compensation: An attorney will fight for maximum compensation, making sure that you are compensated not just for the immediate effects of the injury, but also for the long-term financial impacts, including loss of future earning capacity.

Working with a personal injury attorney gives you a good chance of securing compensation for both the immediate and long-term financial impacts of your injury.

What Does an Attorney Do in Loss of Future Earning Capacity Cases?

When it comes to complicated injury claims like loss of future earning capacity, having an experienced personal injury attorney by your side can be crucial. A personal injury attorney has the legal knowledge and resources to help you build a strong case that accurately reflects the financial toll the injury will have on your future. Here’s how a personal injury attorney can assist:

  • Access to experts: Personal injury attorneys often work with medical professionals, vocational experts, and economic analysts to make sure that all relevant factors are considered when calculating future earning loss.

  • Proving causation: In personal injury cases, it’s not enough to show that an injury occurred; you also need to prove that the injury directly caused the loss of future earnings. A personal injury attorney will help demonstrate this connection.

  • Negotiating settlements: Often, insurance companies or defendants may offer a settlement that doesn’t fully compensate the injured party for their loss. An attorney can negotiate on your behalf to secure a fair settlement.

  • Litigating the case: If a fair settlement can’t be reached, a personal injury attorney is prepared to take your case to court, where they’ll present evidence and expert testimony to demonstrate the impact of the injury on your future earning potential.

A personal injury attorney is essential in making sure that your financial losses are fully recognized and that you receive fair compensation for your injury.

Get Legal Guidance Today

If you or someone you love has been injured and you’re concerned about the long-term financial impact, consider reaching out to me, Attorney Dylan Lawrence.

I’m proud to serve clients in Portland, Oregon, as well as throughout Clackamas County, Washington County, Multnomah County, Marion County, Lincoln County, and Tillamook County. Call me today