If it isn't, and the funds that are available to you are truly poor performers, you should push your employer to change to better funds. But at the same time, you've often warned today's retirees that they could live for many more years, and they'd better be sure they have enough money with which to do it. That sounds to me like a good reason to stay in equities, even if you're nearing 65. During my travels around the country during the past several years, I've visited with HR directors at some of the companies where employees had virtually all of their retirement savings invested in company stock. Clearly for the reason you mentioned, I do not recomment retirees being totally out of stocks, particularly since most retirees now survive for twenty or thirty years.
Equities are the best hedge against inflation.
However, I recently read part of a study, which I believe was conducted by Stanford University, which examined the liklihood of running out of money. I was surprised that the study showed the potenitial for running out of money during one's retirement years is greatly reduced when bonds are a significant part of a retirees portfolio. Bottom line, you need to reduce your stock holdings as you approach retirement, not eliminate them. Unfortunately, many individuals failed to make this adjustment prior to this market collapse. I probably won't yank any money out of my 401-K until I'm 70, or dangerously close.