You need to subtract ~3% inflation from that number every year to reach "spending power."
Therefore, you're only receiving 20k in spending power and allowing nothing for value appreciation. If you can live on that, more power to you though.
No to mention there's no such thing as low risk 7% returns. Maybe the S&P historically did that for a 15 year period here and there, but anyone telling you it's something you can plan on is either lying or a fool.