In years gone by when interest rates were higher, how often did you hear of retirees who would lock up all of their savings in various deposit accounts, earning 5-8% interest, having it taxed and then living off the remainder?
Then they would dip into the principal at various times to buy a new car, or go on holiday or gift money to their grandkids.
That's how most people still write about old people's retirement money. But with interest rates at near nothing, living off interest (and not having capital grow) is no longer viable.
