I have three levels of accounts: checking, savings, and investment. Checking is for day to day expenses like bills. Savings earns a very small interest and serves as my tranche for extraordinary expenses, like a major vacation costing big bucks or that new car I've been eyeing. And investment is where I continue to earn income and capital gains while in retirement.
Savings accounts are not where your retirement money should be. They earn very little. If you are elderly your investment accounts should be mainly interest bearing accounts where you can earn 4 to 5% on the principle. If you are younger, you can take more risk and have more investments in equities (i.e., stocks).
I use this rule of thumb for my investment accounts. The percent of my investments that should be in interesting bearing instruments (e.g., bonds) should equal my age. The rest should be in equities.
EX: If I'm 25 yo, 25% should be in bonds (tax deferred bonds primarily) and 75% should be in equities (mainly large cap stocks). If I'm 80 yo, 80% should be in bonds and 20% in equities.