[lotsofpulp]

The premise is incorrect because real rate of return is what determines how you can “live”. Even if you received 10% returns every year, it makes a huge difference if the medicine/food/labor you need increased by 5%, or 10%, or even 20%.

Additionally, if you have lost the ability to earn an income, then you cannot afford to be down a few years, hence you need to greatly expand the proportion of assets that are earning less than equities, and quite possibly putting you behind inflation. Especially if you live in a popular area.

Combine this with a nation whose population is aging and therefore competition for buying young people’s labor is going up, and you might want to be more conservative about expectations of the future.