Windows 8 File History/Keep saved versions e.g. 3 months- does this mean that ALL files older than 3

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I update and save quite a few files each day, and I can see in File History that there are many saved versions for these files.
This would fill up my backup drive fairly quickly, and therefore, I need to reduce 'Keep saved versions' from the default of 'forever' to about 3 months. But does this mean that all files older than 3 months will be deleted my File History backup?
What happens to all my files that have only ever been saved once, but are older than 3 months? Are these retained in File History or deleted?
The forums on File History do no make this very clear.


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