Don't retire until you read this!

If you are planning to retire at the end of the year, or if you could retire but the economy has made you unsure, there are things you need to know.

Among several significant changes in federal retirement rules, the fiscal 2010 defense authorization bill signed by President Barack Obama allows federal retirees to return to government for limited, part-time appointments without reducing their annuities.

Not all agencies will decide to put aside funds for such appointments. But offices in which retirements are leaving needed skills unfilled are likely to take advantage of the new authority.

What, you say? Why retire and then starting working again at same kind of job? The income boost from part-time work on top of a pension would be an obvious plus. But there are also distinct health benefits that may be even more important.

A national study published by the American Psychological Association finds that there are fewer major diseases and mental health problems for retirees who transition from full-time work into temporary or part-time jobs.

In fact, people who make a “bridge employment” transition between a full-time career and full retirement actually function better day to day than people who stop working altogether.

All of this is good news to baby boomers who have already become known for wanting to be active and continue working after retirement. The new government authority for part-time work after retirement may help those already retired find what they have been seeking. And for those still working, but on the fence about whether to retire, it may provide another incentive.

The findings are reported in the October issue of the Journal of Occupational Health Psychology. Researchers used data from 12,189 participants who were between the ages of 51 and 61. The participants were interviewed every two years over a six-year period beginning in 1992 about their health, finances, employment history, and work or retirement life.

People whose post-retirement jobs were related to their previous careers reported better mental health than those who were fully retired or who worked in jobs outside of their career field. This may be because retirees who take jobs not related to their career may experience more stress in adapting to different job conditions.

The authors suggest that retirees carefully consider their choice of post-retirement employment. So if you can snag a part-time job doing what you used to do, why not try government again?