I too agree. The trick is to leave enough of the proceeds there to compensate for inflation, and withdraw the remainder.
Economists talk about the 'real' interest rate on an investment.
This means the interest rate you get on your investment after you allow for inflation. Realistically, the LMF should have been set up with a longer term view on real interest rates. I would suggest a multiple of 30 or more, to err on the side of safety. For a totally safe investment, US Government I-Bonds guarantee a real interest rate after inflation, and can be bought for periods up to 30 years. It's clear that the current LMF is not enough to support the current pool of life members in an inflation proof way.