So perhaps we should be asking has anyone retired on $1million, assuming primary residence excluded, no other debt and is it working for you?
We're currently retired with > 1M of investible assets.
46% in shares yielding 7.1% (incl. franking)
31% in property yielding 3.2% net
23% in cash and fixed interest yielding 2.5%
Overall yield approx 4.8%.
That would be tight if we had only 1M. We'd have to eat into the assets or take a bit more risk but fortunately we're not in that position. This is what Glenn Stevens alluded to when he said the next generation of retirees will find the price of retirement income streams much more expensive than before.
Looking 1 or 2 decades ahead we're planning for a lower overall yield if the mix is left unchanged. Our properties will age and require more maintenance while yields could drop due to lower population growth. Fixed interest will remain low and could go lower. Less profitable Australian companies will affect share dividends while the chase for high yields could get the market off balance.
In addition there are regulatory threats on the horizon with possible changes in super tax, franking credits, pension rules, NG, CGT etc... as governments look for more money everywhere. Not being pessimistic here but you need to cover all bases BEFORE you lose your ability to earn an income from your labour. As I said, your views about market risks will change markedly when you're actually in retirement and only getting older.
You should take people's boasting with a grain of salt. There are very, very few retirees with no worries whatsoever about their finances.
As a general rule in my opinion, either you aim low in order to get the pension, or you should aim really high to be free of government interference. The middle range is where uncertainty lies.