Required retirement income minus actual/anticipated retirement income streams and current retirement assets (including investments and possible reverse mortgage) equals your retirement income variance target, not your net worth.
If I have various income streams (as an example - in our case of two small pensions, VA disability income, SPIA income, two SS incomes, along with dividend income) and it meets our anticipated income needs, it really dosen't matter what our net worth is, when computing ability to retire, assuming these income sources cover our anticipated expenses.
Net worth considerations for retirement income is a "slippery slope", IMHO. Just because you may have considerable assets, it does not mean that you can "convert" those assets for future income needs, nor are they in a form that is easily convertable (such as selling your home). Net worth in itself is an important measurement to see how you are doing financially overall, as you travel the path of life.
DW/me refer to our net worth as our "estate net worth"; that is what it would be worth today, assuming we both die today (it happens). We don't count any current/future income sources to be added to that "value" since they can't be easily be added to our estate value.