When interest rates go up, bond prices come down.
The value of your everyday savings goes up, therefore the fixed interest bonds that you once had paying X% interest rate is now worth less than before. Bond traders now have more incentive to sell out of the old bonds and put their money into newer or higher interest bonds or other investments.
But over the long term, prices tend to swing back so this may not matter so much.
Most Australians will have some money in Bonds through their superannuation fund, even more so retirees. So picking the right investments matters more if this is all that’s left to retire on.