Elon Musk, worth an estimated $700 billion, says people should not bother saving money for retirement. On the podcast Moonshots with Peter Diamandis, Musk told listeners that putting money away for 10 or 20 years won’t matter. He believes AI will soon make money less important.
The AI Future Musk Predicts
According to Gizmodo, Musk’s theory centers on AI becoming so capable that it drops the cost of everything. He predicts everyone will have universal high income. Host Peter Diamandis agreed, saying AI will push the cost of labor and intelligence to nothing.
Diamandis asked how people would have money to buy things if they’re removed from the labor pool. He suggested the government might tax corporate profits and redistribute income. Musk avoided endorsing any government role. Instead, he repeated his advice not to save for retirement.
When AGI Might Arrive
Musk claims we are already in the singularity. He said AI will reach artificial general intelligence in 2026. By 2030, he believes AI will exceed the intelligence of all humans combined.
Musk has made similar predictions before. In 2024, he claimed AGI would arrive in 2025. In 2023, he called for a pause in AI development because of existential risks. His shifting timelines suggest caution when evaluating his forecasts.
The Risk of Following His Advice
If Musk’s prediction comes true, people would have access to everything they need. But if he’s wrong, listeners who skip saving will have no money in retirement. Musk recently called Social Security a Ponzi scheme and pushed to cut it. The program keeps more than two-thirds of seniors out of poverty.
In Musk’s ideal future, people have no savings and no social safety net. He remains the world’s richest man. He might support giving people money so they can keep buying his products. But he opposes doing this through higher taxes or wealth redistribution.
Musk just went to court to fight for a $139 billion compensation package. His advice to skip retirement savings carries no personal risk for him. For everyone else, the stakes are much higher.
