I think at 65, the monthly payout amount is fixed.

However, in Sep 2020 CPF center officer told me that to keep the entire annuity scheme sustainable, the payout rate could change for two reasons

— 1) mortality — If relatively few members contribute their account interest to the pool, but too many people are drawing (part of) their payout from this pool, then payout could drop

I think this is related to the global problem of “dwindling population of younger contributors to support growing population of nonagenarian retirees.” If mortality rate continues to drop, one solution is to increase retirement age, but many people may not want to work, so payout rate may go down.

— 2) interest rate — government may need to gradually adjust the interest rate from the current 4% (with additional on first 30k and 2nd 30k) if global yield changes.

For example, if global yield drops very very low, but RA is still accruing at 7% then the insurer (CPF-board) can’t keep up.

— How about local inflation?

I didn’t ask but I think this is NOT a reason to adjust the payout amount.