Elon Musk says people shouldn't save up for retirement as money won't matter in the future
The world's richest man, Elon Musk, who is seeking a $139 billion compensation package, urged people not to worry about stashing money away for retirement, as it won't matter in the future. Musk, who is worth over $720 billion, claimed that Artificial Intelligence in the future will create an abundance of goods and services, which will leave money worthless. Appearing on the podcast "Moonshots" with Pete Diamandis, Musk told listeners, “One side recommendation I have is: Don’t worry about squirreling money away for retirement in 10 or 20 years. It won’t matter."
Discussing the progress of AI and the time to reach General Intelligence for machines, Musk said that AI will become so efficient and capable that it will drop the cost of everything to the point where money won't matter. He said, everyone will have "universal high income," adding that "If any of the things that we've said are true, saving for retirement will be irrelevant." He explained that robots will supercharge productivity, which will create a "good future where anyone can have whatever stuff they want."
Musk said the advances in AI will translate into "better medical care than anyone has today" in the next five years. "No scarcity of goods and services. You can learn anything you want about anything for free," Musk added. The response came after the host asked if corporate profitability would be taxed by the government and redistributed as some level of universal basic income or universal high income. Musk then pivoted to saying how AI will make savings pointless. Diamandis, who was caught off-guard by the notion, too, agreed with Musk, saying, "The services will be there to support you. You’ll have the home, you’ll have the healthcare, you’ll have the entertainment.”
However, the Tesla CEO warned that it will be a "bumpy transition" into this utopian world, marked by a series of jarring changes and social unrest. "Now, if you actually get all the stuff you want, is that actually the future you want?" he asked. '"Because it means that your job won't matter," Musk added. Diamandis then asked the billionaire how far humanity is from achieving this 'singularity', and Musk stated that "we're already there. “We’re at the top of the roller coaster, and it’s about to go down. I think we’ll hit [artificial general intelligence] next year in ’26,” Musk said, adding that he was confident that by 2030, AI will exceed the intelligence of all humans combined.
On the other hand, Musk's latest prediction clashes with ground reality as Americans are in the middle of an affordability crisis. Years of stubborn inflation, elevated interest rates, and weak wage growth have together led to millions of people being worried about not being able to afford quality healthcare, owning a home, or even having children in the near future. Furthermore, research shows that Americans are not saving nearly enough to lead a comfortable retirement with rising life expectancy.
More on Market Realist:
Elon Musk makes a bold prediction for 2026 defying concerns about the US economy
What happens if America’s top 5 billionaires split their fortunes? The answer is surprising
Elon Musk is set to become world's first trillionaire — if he hits these key business milestones
