He says that you're left with only $40k per year, then specifies that doesn't account for inflation or "critical life events," including college for the kids, death of the breadwinner, economic downturn, or loss of a job.
If you're retired, death of a breadwinner and loss of a job are already moot since you're not working. I can't imagine it's very common for 65 year olds to have college-aged children that need financing. And if the money is stashed somewhere that isn't even outpacing inflation, an economic downturn won't cut into the principle (if it does, that's the worst investment I've ever heard of).
So much nonsense and fear mongering.