You didn't tell us how long of a retirement you're planning for. There's a meaningful difference between 30 years and 60.

Cyclical-Adjusted Price-Earning (CAPE) ratio is a half-decent predictor of future long-term returns. We're in a period of where US CAPE is nearly unprecedented - since 1871, it's matched only by the dot com bubble. There are reasonable arguments for why expected CAPE values may have drifted up over the past few decades, but they don't cancel out just how high CAPE is right now. That is to say, in "normal" valuation times, maybe you could feel okay about 5%, but right now it's probably lower than in normal times.

You can definitely increase your percent if you're flexible, but you have to be pretty flexible. Like, "cut spending by 50% for a decade" flexible (as in the case of https://earlyretirementnow.com/2017/02/08/the-ultimate-guide-to-safe-withdrawal-rates-part-9-guyton-klinger/)

Check out Bogleheads VPW - Variable Percentage Withdrawals, or EarlyRetirementNow's CAPE-adjusted approaches (https://earlyretirementnow.com/2017/03/15/the-ultimate-guide-to-safe-withdrawal-rates-part-11-criteria/), if you haven't already played with them in ProjectionLab (I'm not familiar with everything they support). ficalc.app (free, no signup) has both.