Prepare for a Lower Standard of Living

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If it's a new day, it must be time for yet another depressing retirement fact, right? Well, I'm here with today's factoid, and … wait for it … some good news about it.

Our friends at the Center for Retirement Research (CRR) at Boston College have just released their National Retirement Risk Index report. One of its key findings is that 51% of American households "will not have enough retirement income to maintain their pre-retirement standard of living, even if they work to age 65." That percentage is up from 44% just two years ago and 30% a decade ago.

Yikes!

It may not be quite as bad as it seems, though. Remember that between 2007 and this year, there was an annus horribilis, aka 2008. It brought down the value of many homes and put most Americans' all-cotton retirement accounts in the dryer on high. That's why so many more Americans' retirements look bleaker.

But things change. Even though the market fell big last year, it has risen strongly during the current rally. Retirement accounts are recovering, and home prices will eventually start rising again, too. Check out how the following names have done -- noting that each has received top ratings from our 140,000-member Motley Fool CAPS community, suggesting that many investors are still quite bullish about their futures:

Company	1-Year Return	Recent P/E
Western Union (NYSE: WU)	19%	15
Akamai Technologies (Nasdaq: AKAM)	53%	29
Taiwan Semiconductor (NYSE: TSM)	22%	23
Suncor (NYSE: SU)	39%	95
Precision Castparts (NYSE: PCP)	48%	14
National Oilwell Varco (NYSE: NOV)	37%	11
ABB (NYSE: ABB)	45%	18

Data: Motley Fool CAPS. P/E = price-to-earnings ratio.

Make it better
Still, if 2008 hadn't gone the way it did, your retirement picture would look better right now, and your ultimate standard of living would likely be higher. Fortunately, you can improve your position, such as by saving and investing more, and perhaps by working a few more years.

Also, if you're not taking advantage of tax-advantaged retirement accounts such as IRAs and 401(k)s, you should consider doing so. Precision Castparts, for example, has increased in value some 21-fold over the past 19 years. If you have a stock that grows from $10,000 in value to $210,000 in your Roth IRA, you'll get to withdraw it tax-free! That's a savings of around $30,000 in capital gains taxes, which can go a long way in retirement.

When saving for retirement, there are only so many things you can control. Do your best where you can, and you'll likely find that it's enough to get you the standard of living you want in retirement.