Just reading the judge's report on the Mills/Mccartney divorce. It mentions some sums of money for various items which will be index-linked. What does this mean?
For reference: http://www.judiciary.gov.uk/docs/judgmen...
What does 'index-linked' mean?
It means that it's linked to the rate of inflation. For instance, if your pension is index-linked, it's inflation proof so that the buying power of your pension will be the same in 20 years as it is today.
Reply:Not a Clue but would love to find out
Reply:It means the amount will rise in line with inflation.
If the cost of a TV licence is £100 and the charge is index linked for the next 5 years then it will rise each year by the published annual inflation percentage announced by the Government, so might cost £104 next year and £106 the year after etc.
Just an example.
Reply:It means that as prices rise due to inflation, so too will the sums due to be paid by Paul rise at the same rate.
Reply:It generally means that these amounts will be adjusted for inflation over the period that these sums will be paid out.
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