Loss of Earnings – a basic example, a profound amount

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Loss of Earnings – a basic example, a profound amount

Here we show an excerpt from the presentation that Tommy Leggate gave to the Financial Reference Group in the summer of 2015 and the Scottish Parliament Evening Reception on February 10th 2016.

 

Assume average person has working life = 46 years

i.e. start at 19, retire at 65 (some will start/stop earlier, some later)

Take the mid-point (median) as the years of loss due to infection = 23 years

some infected people will stop work while still young, others when they are older

Assume average earnings = £26,500

the figure for 2014, it was lower in previous years, it will rise in the future

Assume benefits replace approximately 20% of previous earnings = £5,300

figures reported by one respondent had benefits covering just 10% of previous wage

So, losses (in terms of earnings alone) for this example will be:

(£26,500 – £5,300) x 23 years = £487,600.

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