No. You only lose data on a factory reset or if you are unlocking your device. Also, if you are rooted and installing custom roms you'll be wiping your phone sometimes, but never with a standard factory software update.

 

Sometimes after an update involving the firmware though the phone will behave wonkey until you do a factory reset. If you are doing a major update (such as 4.0 to 4.1) and notice anything wonkey afterwards I would heavily recommend you do a factory reset, but make sure to back everything up first. There are quite a few good backup apps out there, just find one you trust.

 

Hence the OPs question. Can you recommend a good backup solution without root.

With root, I can name several (ROM Manager/CWM, Titanium, etc). Without root I'm not aware of any short of installing the Android SDK on a computer.

 

Well, really the chances of having to wipe/reset a device after a pushed update are slim. That said...

games / apps themselves won't matter as they are all registered to your google account and should re-download regardless of what happens. However, your scores/levels on games wouldn't be recovered.

If your music is synced through google music that will all re-sync as well including your playlists. If you have music locally installed and run a 3rd party player you'd be out of luck on that.

You'd also lose things like your call log, text messages, and settings like ringtones etc.

I *think* that the stock google backup does save settings (ringtones, wifi passwords, bookmarks) but I am not sure what else. It would appear that 3rd party apps CAN make use of it, but that falls on the developer.

However, none of this helps answer the question of how to backup everything if you aren't rooted. And my answer is.... I am not aware of any one program that will. You may need to do it manually with multiple methods... and even then I don't have all the answers.

Google backup for apps and settings
manually copy music and playlists to your PC (if using 3rd party app)
app data like high scores / levels ????????
saving text messages / call logs ??????

 

There is a great app in Google play that you can backup and restore all your data easily. Maybe works for you too.
It's called Go Backup.
All applications of "Go" are amazing.

 

This. ^

Couldn't have said it better myself.

 

How to backup your phone without having root.

Ultimate Backup Tool. No Root Required.

There's a few you can try.