A recent study of the financial and retirement plans of U.S. adults revealed that, based on current retirement savings and changes in social security and pension, nearly half of all adults won’t be able to continue their current standard of living when they retire.

The study was conducted by the Boston College Center for Retirement Research and funded and sponsored by Columbus Ohio’s Nationwide Mutual Insurance Company. Economist have been predicting the dire straits that this survey now bears out. Americans are not doing nearly enough to prepare for their financial needs after retirement.

Many people who anticipate a certain standard of relaxation, travel and leisure when they retire are going to be disappointed if they don’t take more drastic financial measure for their retirement savings. Americans who have been raised on the affluence of post war years aren’t taking proper notice of the dire predictions offered by economists on the potential state of their upcoming retirement.

Because of this lack of foresight by many would-be retirees, the Boston College retirement center has put together its’ National Retirement Risk Index. This measures the amount of risk that exists of not being able to maintain expected retirement living standards. The news may be even worse than indicated by this index however, as certain things are assumed that may, in fact, not turn out to be the case. Assumptions include retirement at age 65, and many may retire before then. It assumes families annuitizing their wealth and reverse mortgaging their homes, which may not occur either.

While the situation is not good, it’s not hopeless. If people were to work just two years more before they retire and save only three percent more than they are now, their financial retirement outlook would improve drastically.

Jeanette Pollock is a freelance author and website owner of retirementdotcom.com. Visit Jeanette's site to learn more about retirement and savings.