The software that's updated - an app, Android, etc. - is gone - but you didn't want the old version anyway. But updating Android doesn't affect your apps, updating an app doesn't affect your pictures, almost everything is independent. (A new version of Android may come with a new version of an app.)
That doesn't mean that you shouldn't be backing up everything that's important to you. Cloud accounts are free, so back up your pictures, music - anything that would be difficult or impossible to replace. (I even back up my apps, because sometimes they "improve" an app to the point that It's pretty useless.) And if the phone is stolen or destroyed, it's too late to back it up. (If you don't have the time to back it up, you don't really need the file.)