Elon Musk recently stated that saving for retirement may be pointless due to an impending wave of AI and robotics that he believes will create a world of abundant resources.
He admitted he tends to be more “optimistic” than others, but still suggested that, contrary to what many financial experts advise, people shouldn’t feel the need to worry about saving extensively for the future.
“I don’t have to stress about setting aside money for my retirement in 10 or 20 years,” he mentioned during an episode of the podcast Moonshot with Peter Diamandis in January. “That won’t be an issue.”
Musk bases some of his controversial perspectives on his belief that rapid developments in AI, robotics, and energy tech will fundamentally change the world.
His Passionate Views
He forecasts that by 2030, AI will surpass the collective intelligence of all humans. He also indicated that there may eventually be more humanoid robots than people. Over time, traditional jobs—especially white-collar ones—could be increasingly displaced.
“For a variety of tasks unrelated to forming atoms, AI can probably handle more than half of those jobs right now,” he stated.
This progress, he believes, might significantly enhance productivity, exceeding what people typically think of as wealth.
Looking ahead, Musk envisions a future where, instead of a universal basic income, everyone will experience a “universal ‘get everything you want’ income.” In this scenario, the connection between wages, savings, and living standards would likely become irrelevant.
With AI’s assistance, he argued, access to superior healthcare will become widespread, even for those without savings, breaking down barriers to goods, services, and education.
Musk’s statements build on his earlier assertions that AI and humanoid robots could make work “optional” and render money less meaningful in the next 10 to 20 years. He has previously likened the future of work to leisure activities, such as sports and video games, rather than something essential for survival.
“If you want to work, it’s like choosing whether to buy vegetables at the store or grow them in your backyard. Sure, it’s harder to grow them yourself, but some people do it because they enjoy it,” Musk remarked at the US-Saudi Investment Forum last November.
Drawbacks of a Postwork Society
However, Musk’s predictions arrive at a time when many Americans struggle with their financial situations. Ongoing inflation and slow wage growth mean that only 55% of U.S. adults report having a “rainy day fund” that covers three months’ worth of expenses, a drop from 59% in 2021, according to a Federal Reserve survey. Fewer than half of those surveyed indicated they could cover expenses of $2,000 or more using their savings.
Moreover, most surveys show that a significant number of Americans are falling behind in their retirement savings or have no savings set aside for retirement at all.
Musk acknowledges the potential downsides of a reality where making a living is unnecessary. He cautioned that a high national income could coincide with social unrest and deeper crises.
“If you could have everything you want, is that truly the future you desire? Because that would imply your job doesn’t hold any value,” Musk reflected.
