900K could generate avargely 36k income every year, plus your 24K SS benefit.
If it is a yes, then, the question is how to allocate your asset:
1. 401 k should be in an income fund, you can look fidelity or any other brokers' MF list. Income fund is used by a lot of retirees whose income depends on the investment. 4% withdrawal should also give some fence for inflation in the future.
2. 100K should be in a safe place you can get any time, a money market is ok, or even ladder CDs so earn more interest. It should be treated as emergency fund, i.e. only used for special occasions, such as illness, a big downtown on the market so you can not take any investment income from above. This is almost 3 years of your annual spending ( SS is always there). Enough for most people.
3. House: Don;t touch it until much later, such as nersing home, then prepare for reverse mortgage when you need more money or just sell. This is also a line of defense for you for emergency (by home equity credit)or inflation.
If 60K is not enough for routine life, considering moving to a cheap area. I bet 60K is enough for a retired couple to live decently in a lot of areas.
