Elon Musk says saving for retirement is pointless due to the approaching “supersonic tsunami” of AI and robotics, which will lead to a world with no scarcity.
Though the [blank] and [blank] CEO acknowledged he’s “more optimistic” than most, he emphasized that people shouldn’t worry about building a nest egg for the far-off future—contrary to the conventional advice of nearly all other financial experts.
“Don’t worry about squirreling money away for retirement in 10 or 20 years,” said the world’s richest man on the Moonshots with Peter Diamandis [blank] last week. “It won’t matter.”
A key part of Musk’s divisive viewpoint lies in his vision of a world transformed by fast-advancing AI, robotics, and energy technology.
Musk’s Provocative Take
Musk predicted that by 2030, AI will surpass “the intelligence of all humans combined.” He also claimed there will eventually be more humanoid robots than humans on Earth. Traditional jobs will slowly be replaced too, with white-collar positions at the top of the list.
“Anything short of shaping atoms, AI can do probably half or more of those jobs right now,” he said.
These advances could lead to such massive productivity gains, he noted, that they will exceed “what people possibly could think of as abundance.”
Instead of a universal income, everyone will enjoy a “universal ‘you can have whatever you want’ income” in the future, he stated. In this world, the connection between individual wages, savings, and living standards will no longer hold meaning.
Even without savings, AI will help people get better medical care than what’s currently available within five years, as well as eliminate any limits on the availability of goods, services, or educational opportunities.
Musk’s remarks build on his earlier claims that AI and humanoid robots will make work “optional” within 10 to 20 years, and [blank] Musk previously compared the future of work to leisure activities like playing sports or video games rather than a survival necessity.
“If you want to work, [it’s] the same way you can go to the store and just buy some vegetables, or you can grow vegetables in your backyard. It’s much harder to grow vegetables in your backyard, and some people still do it because they like growing vegetables,” Musk said during the [blank]
Drawbacks of a Post-Work Society
To be clear, Musk’s future predictions come at a time when many Americans are struggling to save. Partly due to persistent inflation and weak wage growth, only 55% of American adults reported having a “rainy day” fund covering three months of expenses for emergencies—down from a high of 59% in 2021, according to [blank]. Fewer than half of those surveyed said they could cover an expense of $2,000 or more using their savings.
Surveys also consistently show that a large share of Americans are behind on retirement savings or have [blank].
Musk is also aware of the potential downsides of a society where earning a living isn’t necessary. He warned that a generous universal income could go hand-in-hand with social unrest, as people might face a deeper crisis of meaning.
“If you actually get all the stuff you want, is that actually the future you want? Because it means that your job won’t matter,” Musk said.