There are investments that return 10+%, but that doesn't mean that's how much you should take out every year. The 3-4% (usually 4% for retirement savings) is to buffer for years where you get negative returns. I've never seen anyone recommend withdrawing 12% a year with plans to have the nestegg last a long time.
It’s also less about “never making another dime working” and more that you don’t need a traditional 9-5. You can and should figure out other sources of income.