I have to say that I am surprised (and feeling a little insecure) at how many of you have responded that you've recovered from the market downturn already. I left megacorp in Sept '07 and, even with a reasonable asset allocation, had lost quite a bit at the worst point. Thankfully, my investments have recovered quite a bit, but I'm still down from the high - maybe 10-12%. Is this just me?
Anyway, as to the original question, I have found that I can live well on even less than I had budgeted for. I also decided that I will do whatever it takes to never go back to megacorp. I've probably been more conservative in my spending than I needed to be, but it lets me sleep at night. In the future, I may loosen up the purse strings a bit, but either way, I'm so happy to not be at my j*b anymore that I am now certain that I'd do whatever I had to to remain at least semi-retired.