More Americans are using their long-term savings to pay today's bills and risking a delayed or financially insecure retirement, says Eleanor Blayney, consumer advocate for the Certified Financial Planner Board of Standards Inc.

The main reason: Recent retirees and those on the cusp of retiring have underestimated both how much they needed to save and how long they may live in their post-working world. "I think you will find that people are feeling that they are saving less," says Blayne.

According to a July survey released by the CFP Board and Consumer Federation of America, an estimated 51 percent of financial decision makers feel that they've fallen behind on their retirement savings compared with 38 percent of decision makers queried in a similar 1997 survey.   

But it's not too late for financial advisors to help pre-retirees create a plan that will support a fulfilling and financially stable retirement. "Today's retirement is no longer defined by the moment we file for Social Security, or start taking our required IRA distributions," says Blayney. "Instead, we must create financial strategies that unfold gradually over a period of time to financially secure our golden years."

In January the CFP Board launched a new initiative called 12 for '12 Approach to Financial Confidence' that presents the components and steps for successful personal financial management. Each month, the Board discusses a topic. Among them are establishing realistic goals, tax planning, emergency and risk management, investing, retirement, debt management and estate planning.

"Your finances aren't a menu where you can order a la carte, deciding which items are most important," Blayney says. "The path to financial confidence is a journey with a series of important and interconnected elements that all deserve attention."

Blayney recommends pre-retirees follow these five steps to financially prepare for retirement:

Plan Within Your Means. Having a specified net worth to reach is not the prerequisite to a secure retirement. Retirement planning is about adjusting your lifestyle to what you already have. The reality is that there are millionaires going broke in retirement, as well as lower-income families living comfortably on their savings and Social Security.

Diversify Your Retirement Investments
. There is no one product, fund or savings account that will take care of all your retirement planning needs. For example, annuities may generate a steady income, but they don't provide liquidity for big, unexpected expenses. Target-date funds may take care of portfolio rebalancing, but may not respond well to unexpected market events. Saving only in a 401(k) or IRA gives you great tax advantages while you are accumulating, but does not provide the tax flexibility of an after-tax savings or investment account when you start to withdraw.

Generate Your Own Income. Retirement planning is not about preparing for a guaranteed, predictable source of income. The American retiree is increasingly on his own to generate income for retirement, and for many, this means continuing to work, in some capacity, for some portion of those final years.

Embrace Cost-Sharing. Retirement planning is not just about becoming financially independent. Retirees may need to address a shortfall in savings by exploring housing options that are more cost-effective than living alone or staying in the family home, such as shared or cooperative housing. Research what community resources and services are available to the aging.

Consult An Expert. Successful retirement depends on many more factors than just the balance in your 401(k). Managing taxes, debt and expenses makes a big difference, as does having enough of the right kind of insurance coverage, choosing the best medical plans for your circumstances, and drawing up estate planning documents.

-Jim McConville