I held throughout 2008 - collecting 99% of my dividends throughout the recovery.  A couple of companies cut their payout while a couple others actually increased their payout during that period.  A good portfolio will allow seniors to have a solid stream of income from dividends.

But the issue in this case isn't the 65 year old but rather the 40 year old who is entering their prime earning years and still has a couple of decades to go before retirement.  You could have two events like 2008 unfold in that period and still have ample room for recovery.

Most aged based portfolio weighting rules of thumb were derived when T-bills were paying more than 4%.  Settling for a 40% fixed income component today that at best keeps pace with inflation is a good way to ensure that at 65 you won't be able to live off your investment income stream.