Future earning capacity
In plain English: loss of future earning capacity is compensation for the money you'll probably lose in the years ahead because your injury limits the work you can do.
How it differs from lost wages
Lost wages cover income you've already missed, and they're proved with pay slips. Future earning capacity looks forward. It covers situations like having to switch to a lower-paid job, work part-time, retire early, or lose a promotion you were on track for. Because it's about the future, it relies on opinions and estimates rather than receipts.
Evidence that supports it
- Medical opinions on your permanent restrictions and prognosis.
- Your work history, qualifications, pay records and tax returns.
- Evidence of career plans before the accident: training, promotions, job offers.
- Vocational expert reports on what work you can still do and what it pays.
- Economist or actuarial reports that turn future losses into a lump sum (present value).
Self-employed and young claimants
If you're self-employed, business accounts and tax records for several years before the accident matter a lot. For children and young adults with no work history, courts look at education, family background and likely career paths, which makes expert evidence even more important.
This part of a claim often can't be valued until your condition has stabilized. See maximum medical improvement.
Related: economic damages · how much is my claim worth?
Related terms
General information, not legal or medical advice. Rules differ between US states, the UK and Canadian provinces, so check the law where your accident happened. How we write and check · Legal disclaimer