Risk and Reward
AA pilots are among the lucky few to have a choice remaining. Remember that if AA dumps their pilot pension on the PBGC in bankruptcy, noone who takes a lump-sum now would be truly safe for at least three years. "Dear Mr. X; Please send a check for $XXX,XXX, your excess distribution, based on your newly calculated retirement benefits." Health and disability benefits would also be dumped in bankruptcy for past retirees as well. A United retiree pays about $500 per month for medical benefits and the plan is loaded with co-pays, etc. (family of four). Business, contract flying, and corporate generally involve IRS 1099 income, which means double social security and medicare payments and few employee-type benefits...you are really betting on your good health going forward, but if you are lucky, then the taxes will be staggering. You will be no more welcome, whether overseas or domestic, by the younger pilots in a contract airline or corporate setting...most jobs are available to you because they "have" to hire you, not that they "want" to do so. Indians or Koreans are no more happy to see you in the left seat than you would be to see them if the situation were reversed. Age 65 is like a big warm blanket; medicare, social security without penalty, maximum pension payout (if you're among the lucky few). Pull the plug early and that lump-sum's luster could rapidly fade. Good Luck. As we used to say long ago..."no guts, no air medals".