How Lost Earnings Are Calculated in Wrongful Death Claims

One major component of a wrongful death claim is the income the deceased would have earned and contributed to their family over the rest of their working life. Calculating that fairly takes more than simple math.

What goes into the calculation

Economists typically calculate the present value of the earnings the deceased would have earned until retirement, factoring in average annual salary and any bonuses, expected raises and career growth, the number of years remaining until a typical retirement age, inflation adjustments, and applicable taxes.

A simplified example

Consider someone earning a stable salary with roughly two decades left until retirement. An expert would project career earnings forward with expected raises, then adjust that total for inflation and taxes to arrive at a present-day value — a figure that can be substantially different from simply multiplying current salary by years remaining.

Why expert analysis matters

Vocational and economic experts account for work-life expectancy, realistic salary growth patterns, inflation, and taxation in a way that holds up to scrutiny. Insurance companies rely on similar calculations, so a well-prepared expert analysis puts a family in a stronger position during negotiation.