index-link
C1formal, financial
Definition
Meaning
adjusted automatically according to changes in an index of prices, typically to protect against inflation.
Having a value, payment, or rate that rises and falls in line with a specified economic indicator.
Linguistics
Semantic Notes
Primarily a predicative or attributive adjective describing financial instruments, pensions, or benefits.
Dialectal Variation
British vs American Usage
Differences
Term is more common in UK financial and governmental contexts; US English often uses 'inflation-adjusted' or 'inflation-indexed'.
Connotations
UK: suggests stability and state planning; US: suggests a technical financial product feature.
Frequency
High frequency in UK news/pensions; medium-to-low frequency in US, outside specific finance.
Vocabulary
Collocations
Grammar
Valency Patterns
be index-linked to somethingindex-linked pensionindex-linked against inflationVocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “[not commonly idiomatic]”
Usage
Context Usage
Business
Describes financial products whose returns are protected from inflation.
Academic
Used in economics papers discussing real vs. nominal values and social security.
Everyday
Rare in casual conversation; used when discussing pensions or investments.
Technical
Precise term in actuarial science, pension fund management, and government policy.
Examples
By Part of Speech
verb
British English
- The government will index-link state pensions from next April.
American English
- The Treasury inflation-indexes these bonds.
adverb
British English
- The payments increase index-linked.
American English
- The benefits are adjusted inflation-indexed.
Examples
By CEFR Level
- My grandmother's pension is index-linked, so it keeps up with prices.
- The bond's interest is index-linked to protect savers.
- The policy proposed shifting all public sector benefits to an index-linked model tied to the Consumer Price Index.
- Investors sought index-linked gilties as a hedge against anticipated inflationary pressures.
Learning
Memory Aids
Mnemonic
Think of an INDEX finger LINKED to the inflation dial; when the dial moves, the finger points to a new, adjusted number.
Conceptual Metaphor
INFLATION IS A MOVING TARGET; AN INDEX-LINKED PRODUCT IS A WEAPON THAT TRACKS IT.
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid translating directly as 'индексированная ссылка' (which is 'indexed link' in computing). Correct term is 'индексируемый (на инфляцию)' or 'привязанный к индексу'.
Common Mistakes
- Using 'index-linked' as a verb (e.g., 'They index-link the pension'). The standard adjective form is correct.
- Confusing with 'hyperlink' or 'index finger'.
Practice
Quiz
What is the primary purpose of an index-linked financial product?
FAQ
Frequently Asked Questions
No, it is understood internationally in finance, but 'inflation-indexed' is more common in American English.
It is primarily an adjective. While 'to index-link' is occasionally seen, more standard verb phrases are 'to index to' or 'to link to an index'.
In the UK, it is often the Retail Prices Index (RPI) or Consumer Prices Index (CPI). In the US, it is typically the Consumer Price Index for All Urban Consumers (CPI-U).
A fixed pension, where the payout amount does not change with inflation, losing purchasing power over time.