For those preparing to retire, creating a plan that generates the inflation-adjusted income they'll need throughout retirement can be a challenge. While the solution to that challenge is different for everyone, the four-step process to arriving at that solution is the same, says Mark Singer CFP®.

The four steps that people need to take as they plan for retirement are:

1. Identify ongoing needs. You need to calculate your ongoing expenses, including both fixed (such as car payments, your mortgage and utilities) and discretionary expenses (such as travel, gifts or dining out). Don't forget to include taxes. A complete accounting of various expenses will help you determine how much money you must have in retirement.
2. Create a bucket list. A bucket list is different from a list of ongoing needs. Items on your bucket list are your big goals or dreams, such as taking a two-month trip to Europe or buying a second home. Creating a detailed bucket list and then estimating how much each will cost will allow you to include those items in your retirement budget.
3. Set up emergency reserves. Things happen that we don't expect, and it's important to have money set aside to meet any of those unexpected expenses. Having emergency reserves will help you deal with these one-time costs without derailing your overall retirement plan.
4. Generate income tax efficiently. To make sure that you're able to fund your retirement, you should set up your finances so that you're generating the most tax-efficient income. This involves coordinating all the different aspects of the financial planning process in order to get the best possible results.

Successfully completing each of these steps will allow retirees to determine how much money they will need in retirement, and to make the decisions that will allow them to manage the money that they've worked so hard to accumulate.

Mark Singer is a CERTIFIED FINANCIAL PLANNER™ professional and the author of The Changing Landscape of Retirement—What You Don't Know Could Hurt You. He has been The Retirement Guide to thousands of investors for close to 25 years and is the creator of the Retirement Roadmap and the Financial Organizer System, both of which contribute to a solution to investors' greatest concerns—properly coordinating their financial affairs.