Saving / Spending Retirement money once retired

Hey guys.

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My parents both just recently retired and are looking into what to do with their money to save but also spend to live off of. I don't know the exact amount of money they have but it's a sizable amount. They both have 401ks and investment accounts as wells as savings accounts. They have no mortgage as their house is paid off and are generally in a good position finically.

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They recently met with a financial advisor at Fidelity who, after a bit of the run-around on actually meeting someone in person instead of just over the phone, they met with this guy who went over their portfolio and such. He told them they couldn't withdraw from their 401K (even though they are 65 and 62 respectively) but could if they rolled it over into an IRA. Also they couldn't merge any of their funds (I assume for tax reasons). They ended up rolling their money into a traditional IRA with Fidelity (from whatever other company they were at before) but it's not invested in anything yet. The advisor setup a followup appointment with them and gave them some material to look over before doing the investing and we're all a bit confused on it all.

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First, they want to take about 1% fee of their worth in annual fees. Is this the norm in fees? Essentially they want to manage the money and disburse the money to them every so often then collect their fees. So they would essentially just receive a "check" that they could spend as their income every month. Is this the typical of how it works in retirement?

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I see a lot about setting up different accounts on this sub, and saving your 20% or so in E-funds, 401K, IRAs, HSAs, etc. But not much mention about what to do when it comes time to live off of that and not a steady income.

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Is there something they should be looking for, any questions they should be asking, anything we haven't thought of? It just seemed a bit strange to pay someone 1% fee (in I assume addition -- though maybe not -- to index fund or other account fees) to give you your own money each money.

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Thanks for any insight you might have.