If the retired investor already has the diversified portfolio that was invested over 30+ years, and it consists of stocks, bonds, and money market funds, and the rising interest rates clobber the bonds, and the investor fears etc clobber the stock market, then that investor will not have time to recoup his losses.
I was heavily invested in the stock market for years and years. Maybe 80%+. I retired in my early 60s. I have maybe 45% in stocks now many in high dividends stock index funds. Lots of cash and some bond mutual funds.
It’s good to continue to retain some stock investments to offset inflation. But yes there are always risks of crashes that can happen at any time. You don’t want to harvest income from crashing stock funds. Never invest in stocks monies that you will need in the next 5+ years etc.
The hardest thing was the sacrifice to save the money in the first place. Many can’t do it, make up excuses, etc. But it was worth it to be able to retire at the same standard of living.