United Airlines pilots must retire at age 65. That makes retirement planning a timing job, not just a savings one. Your 401(k), deferred comp, and lump sum choices can affect your taxes for years. The order you draw down each account matters.
United Airlines pilot retirement planning starts with a date that is fixed in federal law: age 65. Under the Fair Treatment for Experienced Pilots Act, a pilot flying for a Part 121 carrier must leave the flight deck on their 65th birthday. For a senior captain, that is the day a large, steady income stops. The savings are usually there. The harder question is how to turn years of company contributions and personal savings into income that lasts, without paying more tax than you need to along the way.
For the whole career picture, from building seniority to the years after 65, see the guide to financial planning for airline pilots.
What Does Retirement at Age 65 Mean for United Pilots?
At 65, a United pilot loses the right to fly Part 121 airline routes, so the paycheck that funded everything else ends. Many pilots keep flying corporate or charter aircraft, where no federal age cap applies, but airline pay stops. Sound planning treats 65 as a known deadline and works backward from it, rather than reacting once the date arrives.
How United Pilots Build Retirement Savings
A United pilot builds retirement savings mainly inside the Pilot Retirement Account Plan, known as the PRAP, a 401(k) administered through Schwab. United also contributes a large share of pay into the PRAP on each pilot’s behalf, set to reach 18 percent of eligible compensation in 2026 under the current pilot agreement.
Because senior pilots earn well above the IRS limits on qualified plans, those company dollars often pass the annual cap. When that happens, the extra contributions can go to a Retiree Health Account, the RHA. The pilot agreement also provides for a Market-Based Cash Balance Plan, the MBCBP, which had not yet been put in place as of April 2026. Legacy United pilots may also have a benefit from the old United pilot pension, which ended in bankruptcy and is now paid by the Pension Benefit Guaranty Corporation. Legacy Continental pilots may instead have a benefit from the frozen Continental pension plan, which United still administers. So a single pilot can reach 65 with money sitting in several places, each with its own rules.
Based on the 2023 United Pilot Agreement and current IRS contribution limits.
Your airline already set your retirement date.
Before Your Last Flight
A five-step retirement guide for airline pilots.
The Income Cliff at Age 65
The size of the savings is rarely the problem. The timing is. On a pilot’s 65th birthday, a high and predictable income ends, and the money that replaces it has to come from accounts that follow different tax rules. Drawing from the wrong account first, or all at once, can push a single year of income into a much higher bracket. That is why a United pilot’s broader retirement plan should work backward from age 65 rather than start at it.
Turning Accounts into Retirement Income
The goal after 65 is steady, tax-aware income. That means deciding which accounts to draw first, and how much to convert to Roth and when. It also means handling the lump sum or annuity choice on the Market-Based Cash Balance Plan once it is in place, using the payout options its plan documents set. A clear withdrawal sequence can lower lifetime taxes and smooth your bracket year to year. Pulling these accounts together into one income stream is the heart of retirement income planning.
Account types vary by pilot. Legacy benefits and taxable savings may also apply.
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Taxes, RMDs, and the Order You Draw Down
Pilot pay sits in high tax brackets, so the tax treatment of each account matters. Pre-tax 401(k) dollars are taxed as ordinary income when withdrawn. Roth dollars, contributed after tax, can come out tax-free in retirement when the rules are met. Under the SECURE 2.0 law, higher earners must now make catch-up contributions on a Roth basis. Later, required minimum distributions, or RMDs, force taxable withdrawals from pre-tax accounts, and large withdrawals can raise Medicare premiums through IRMAA. Planning the order and timing of withdrawals can keep more income in lower brackets for longer.
A Planning Checklist Before Your Final Flight
Sound United Airlines pilot retirement planning works backward from age 65. A few moves are worth reviewing well before that date:
- Map every account in one place: the PRAP 401(k), the MBCBP, the RHA, any frozen pension, IRAs, and taxable savings.
- Once the MBCBP is in place, decide how spillover should flow between it and the RHA in each year you still fly.
- Choose a withdrawal order that draws taxable, tax-deferred, and Roth money in a tax-aware sequence.
- Settle the MBCBP lump sum or annuity question before you retire.
- Look at Roth conversions in any lower-income years between retirement and the start of required withdrawals.
- Line up Social Security timing with the rest of your income.
None of these moves stands alone. Each one affects the others, which is why pilots tend to map the full picture years ahead.
Frequently Asked Questions
When Must a United Airlines Pilot Retire?
A pilot flying for a Part 121 carrier such as United must stop on their 65th birthday. The limit comes from federal law, the Fair Treatment for Experienced Pilots Act, and applies to captains and first officers alike. As of 2026, there is no approved change to the age 65 rule.
What Is the PRAP?
The PRAP is the United Airlines Pilot Retirement Account Plan, a 401(k) administered through Schwab. It is the main account where a pilot’s own savings and the company’s contributions build up over a career.
What Happens to Company Contributions Above the IRS Limit?
When company contributions pass the yearly IRS limits, the extra dollars spill over into other accounts, currently the Retiree Health Account, with the Market-Based Cash Balance Plan to follow once it is put in place. How that spillover is directed can affect both current and future taxes.
Can the Cash Balance Plan Be Taken as a Lump Sum?
Yes. The plan had not yet been put in place as of April 2026, so its payout options will be set by the final plan documents. Market-based cash balance plans at other airlines generally offer a lump sum or an annuity. Each path carries different tax and income effects, so the choice is worth modeling before you decide.
Do United Pilots Still Have a Pension?
The old United pilot pension ended in bankruptcy, and the Pension Benefit Guaranty Corporation now pays the legacy benefit for eligible pilots. The frozen Continental plan is separate and still administered by United. Current pilots build retirement money mainly through the defined-contribution accounts described above.
How Are Pilot Retirement Withdrawals Taxed?
Pre-tax withdrawals are taxed as ordinary income, and Roth withdrawals can be tax-free when the rules are met. At retirement, many pilots consider rolling their 401(k) into an IRA to widen their investment and withdrawal options.
When Should a United Pilot Start Planning?
The earlier the better, ideally several years before age 65. Decisions about Roth contributions, spillover, and the lump sum question are easier to manage with runway, while a pilot is still earning.
For a United pilot, the work of a career is largely done by 65. The work of making it last is its own discipline. Preserve. Strengthen. Grow.™
Holland Capital Management is an independent advisory firm. We are not affiliated with United Airlines and do not administer its pension or retirement plans. If you are looking for information about your benefit, please contact United Airlines benefits directly.
