I was using a i7-4790 about a year and a half ago and, from my experience, ti does create a noticeable bottleneck in anything higher than what you have. I was pairing it with a GTX 1660 Super and I had stuttering in Medium Intensity Conflict Zones and it was almost unplayable in High Intensity ones. After upgrading to an Ryzen 9 5900X and using the same GTX 1660 S, everything became playable (low-med settings but playable) and way smoother in Horizons.
So I recommend saving up in the CPU and all the other parts that it requires