When we retire 20 years from now, how are people going to survive living off 4% of their retirement money?

I'm new to the finance idea that when you retire, you should only use 4% of your total retirement savings each year.<br><br>Let's say you have a million dollars. With 4% that only comes out to 40,000 a year. I don't understand how anyone will be able to survive off just 40,000 for the rest of their life.<br><br>Retirement is supposed to be when everyone can travel and enjoy life. There's no way anyone can travel, have a house, and just live their life off of just 40,000 a year.<br><br>&#x200B;<br><br>\*\*Options for when we retire \*\*<br><br>\*Buy a house that is way under budget and travel the world (living below your means)<br><br>\*Downsize (I understand this can be hard to do for a lot of people)<br><br>\*Buy an airbnb or rental property<br><br>\*Buy a dividend paying stock<br><br>\*Buy real estates in s\&p 500 index ex. vanguard real estate ETF<br><br>\*Buy and sell options<br><br>\*Buy and sell crypto currency<br><br>\*Buy a robo advisor portfolio<br><br>\*Invest in gold or other precious metals<br><br>&#x200B;<br><br>&#x200B;