Career switching has become more common as people work longer to save enough to retire. Making a move to a new career later in life can help you stay in the workforce longer. The likelihood of still working at age 65 was 9.1 percentage points higher for people who had changed jobs in their 50s, according to a recent analysis by the Center for Retirement Research at Boston College. (See table below.)

The problem for many career switchers is that they can usually expect a pay cut when starting out in a new field. And the lower salary can diminish what they can save for retirement. "I actually recommend career switchers not to worry about the short-term lack of retirement savings. The more important thing is the long-term career trajectory," said Hui-chin Chen, a certified financial planner and co-owner of Pavlov Financial Planning in Arlington, Virginia. If you are thinking about switching careers, here are three steps you should take:

Know your worth

Run the numbers

Once you have a ballpark salary, figure out how that pay fits into your financial plan. "The issue here is how the career switcher plans to deal with their new, lower income," said David Mendels, a CFP and director of financial planning at Creative Financial Concepts in New York City. "Are they planning to adjust their expenses downwards accordingly? Or do they intend to attempt to maintain their previous lifestyle on their now lower income?" It's not just your paycheck and expenses that should adjust with your encore career. Understand how the income in your new gig will affect your Social Security benefits, which are based on your highest 35 years of earnings. Use these free calculators to determine how your salary will change your Social Security payouts.

Remember your 401(k)