7% return is a goal. It consists of total (not real, inflation adjusted) returns from interest and dividends and capital appreciation. "7% interest", i.e. amo

7% return is a goal. It consists of total (not real, inflation adjusted) returns from interest and dividends and capital appreciation. "7% interest", i.e. amount paid back from money you borrow out, is pretty rare these days. CDs did pay >8% in the 80s and junk and troubled sovereign might still pay that much. With lower inflation, some pension funds are targeting a lower return.