Folding Pocket Aces in a tournament

If it such a bad play here is the case where it worked out increbibly well. Im in 2nd place in the tourney with 8 people left. I have 95k in chips the chip leader has 115k and moves all in preflop I look down and see AA then look around the table and realize there are 3 people with less than 10k and noone else has more than 30k, and the only person that can knock me out just moved in on me so I folded AA. He makes a flush and I live on(he also knocked out 2 people). Iget down to the final 4 and we make a deal for $1400 each. If I call there and get knocked out I lose $1200 because Icouldn't let go of AA. The point is yeah you have aa but if the situation calls for it where you could make alot more $ by folding you have to do it. Please tell me how this was a bad play. If I would have won the hand(after folding) I still would have been happy with the play because for that situation it was the correct play.