We're in this category. We've saved like crazy people for 15 years now and budget on $2,500 / month (or less) living in Mexico (living well, I might add). This allows us not to touch our principle an maybe grow a little.
Even living in CA we got our expenses down to $3,500 / mo in LA.
Our dividends cover about half and CD's cover the other half. We don't touch our tax deferred accounts and DW gets a whopping $10k / yr in 17 years...pension
We count on reduced SS as we're 20-23 years away on this. In the next 20 years, we'll pay out of pocket on healthcare and are currently paying $300-350/mo for this.
Definitely need to be on the same page with your spouse and try to communicate expectations often. DW is always the money worrier. I'm the spreadsheet nerd who shows the numbers (in a conservative way)...