IDEAS home Printed from https://ideas.repec.org/a/bpj/jbvela/v16y2021i1p61-75n3.html
   My bibliography  Save this article

The Erroneous Selection of the Full Social Security Age as the Terminal Date for Lost Earnings Projections

Author

Listed:
  • Gaughan Patrick A.

    (Economatrix Research Associates, Inc., New York, USA)

  • Baum Charles L.

    (Economics, Middle Tennessee State University, Murfreesboro, USA)

Abstract

It seems to be increasingly common that some personal injury lost earnings projections are being extended by some experts to the “Normal Retirement Age” (NRA) – the age where workers can receive full, unreduced Social Security benefits. The selection of this age often implies a rejection of the worklife expectancy. However, statistics on claiming behavior of Social Security benefit recipients show that only a minority of recipients wait until the NRA to claim benefits. We use actual claiming behavior and the respective ages to show the use of the NRA for determining the ending date of lost earnings projections, instead of the well-researched worklife expectancy, results in exaggerated and speculative lost earnings damages.

Suggested Citation

  • Gaughan Patrick A. & Baum Charles L., 2021. "The Erroneous Selection of the Full Social Security Age as the Terminal Date for Lost Earnings Projections," Journal of Business Valuation and Economic Loss Analysis, De Gruyter, vol. 16(1), pages 61-75, February.
  • Handle: RePEc:bpj:jbvela:v:16:y:2021:i:1:p:61-75:n:3
    DOI: 10.1515/jbvela-2020-0026
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/jbvela-2020-0026
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    File URL: https://libkey.io/10.1515/jbvela-2020-0026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:jbvela:v:16:y:2021:i:1:p:61-75:n:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.