If you’re like many people, you probably have another career path you would like to pursue instead of your current job. But you may be holding yourself back because you think you can’t afford to make the change. This is especially true if you’re in your 40’s or 50’s, when you’re closer to retirement, instead of earlier in your career.

However with a little planning this may be the perfect time to make the leap.  Having strong retirement account balances help.  As does having some savings set aside to dip into.  But one of the most effective things you can do to give yourself some wiggle room financially is plan on delaying your retirement by a few years.

Delaying your retirement has a big impact on how much you’ll need to save. The more years you work, the longer you can postpone dipping into your savings and consequently, the less money you’ll need when you do decide to retire.

For many people this tradeoff is one they are willing to make.  They would love to keep working — just not in their current job.  This may be the perfect time to try out another career, find more life-work balance, or start a business that you’ve been thinking about. Here are steps you can take to start putting your plan in action.

1. Run some numbers. Have an estimate of how much your income will dip and for how long.  Then you can come up with a plan of how this will affect your savings and your retirement date.
2. Save up as much as you can before making the switch to a new career. If you have your eyes set on a career path that may pay less, start planning now by contributing more to your retirement accounts and setting up an adequate emergency fund.
3. Start tracking your expenses.  Anytime you’re planning on making a change in your financial situation, it helps to know how much you are spending.  Try tracking for at least a few months to get a good idea of what you spend on average.
4. Spend Less.  The easiest way to get by with less income is to start spending less. After tracking your expenses, there may be some areas that stand out as possible areas to cut. Start first with your fixed or recurring expenses and see if there are any you can reduce or eliminate. Then turn to your discretionary expenses and try cutting back gradually in one or two areas.
5. Make sure you have the right balance in your portfolio. Generally the closer you are to withdrawing money from your retirement accounts, the more you should allocate to fixed-income investments. The right balance of equities to fixed income depends on your unique situation but there’s no reason to take on more risk than you need to reach your goals.
6. Plan on delaying social security if possible.  Once you reach your full retirement age (66 or 67 years depending on birth date), each year you delay taking social security up until age 70 will increase your future benefits by 8%.  This makes sense in situations when you plan on retiring later.
7. Have some money saved outside your retirement accounts.  You’ll be penalized 10% if you need to withdraw from an IRA before 59 ½ so make sure you have another source to draw from if you’re planning on reducing your income before 59 1/2.  With a ROTH IRA you can withdraw the amount you contributed without penalties, but not the earnings.
8. Research healthcare.  Make sure you consider any additional healthcare costs when switching jobs, especially if you’re planning on working freelance or starting your own business.
9. Have a backup plan.  Things are always changing and it helps to have a Plan B. The more options you have for a back-up plan, the more risks you can take now. Some options for Plan B could be spending less, downsizing your home, or keep working longer if possible.

Switching career paths can be exciting but nerve-wracking, especially if your income will go down. Having a plan and knowing your options will help make the change less stressful and more successful. You may need to work a little longer, but if it’s a job you love, the tradeoff may not be so hard to make.