In anticipation of rising rates, there are a few steps future retirees can take to preserve their wealth.
"Investors would be well served to do some sector rotation in their portfolios," Johnson said. He recommended selling some stocks from industries that perform well during falling rate environments, such as apparel, retail, construction, durable goods and autos, and buying stocks in industries that perform well during rising rate environments, such as energy, consumer goods, utilities, food and steel products.
In the long-run, however, Johnson advised investors to temper their expectations in a rising interest rate environment, as returns on equities will be lower in general.
Investors should get out of bonds and look for other safe, secure options to protect their money, said Michael Foguth, president and founder of financial services firm Foguth Financial Group in Howell, Mich. "History shows when interest rates go up, bond values go down. Most people use bonds for safe money -- when interest rates go up, bonds will no longer hold the title of safe."
Increasing the fed funds rate directly affects how much it costs banks to borrow from each other. The direct effect for consumers will be that the cost to borrow will increase. "If you have a variable rate mortgage loan or are in the market to borrow money for a large purchase, the fed rate hike will make borrowing slightly more expensive," said Kyle Winkfield, managing partner at Englewood, Colo.-based O'Dell, Winkfield, Roseman & Shipp, which provides retirement financial services. Borrowers should either lock in today's low rates, or work to eliminate potentially expensive debt that could eat at future retirement savings.