I tell everyone to figure out how much they need to live and put just enough in an annuity to give you that (rent, heat, food, insurance). The rest of your 401k (if anything!) is fun money.

Don't forget that you should have long term care insurance that covers a good nursing home (get this as soon as you retire when it is still cheap because odds are you will never need it).

With this plan you can outlive your savings and still have an okay life.