Asger Risom
Elon Musk’s claim that retirement savings will soon be obsolete has reignited debate over how much faith people should place in a future shaped by AI. While the billionaire predicts abundance will replace scarcity, economists and technologists warn that ignoring today’s financial realities could leave many exposed.
Elon Musk has once again stirred controversy by suggesting people may no longer need to save for retirement within the next 10 to 20 years.
Speaking on the Moonshots with Peter Diamandis podcast, the Tesla and SpaceX chief argued that advances in artificial intelligence, robotics and energy will so dramatically reshape the economy that traditional financial planning will lose its relevance.
Business Insider spoke with a range of economists, personal finance specialists and AI researchers to assess Musk’s claim. Their responses varied in emphasis, but they shared a common conclusion: the future Musk describes is far from guaranteed, and saving for retirement remains essential.
A future built on technological optimism
Musk’s argument rests on the idea that accelerating innovation will usher in a world where material constraints are dramatically reduced.
In his view, AI-driven productivity and automation will generate such widespread prosperity that individuals will no longer need to rely on personal savings to support themselves later in life.
He has made similar predictions before, often framing technology as a force that solves scarcity altogether. This time, however, his remarks landed amid persistent inflation pressures, high household debt and growing anxiety about retirement security.
Elon Musk recently came under fire in an AI-related issue with his xAI, Grok, causing new doubt regarding his handling and understanding of a future with AI.
Warnings from finance experts
Several economists described Musk’s message as risky. Geoffrey Sanzenbacher of Boston College’s Center for Retirement Research said encouraging people to save less ignores mounting pressures on existing safety nets such as Social Security.
Alicia Munnell, a senior advisor at the same center, questioned Musk’s understanding of how most households actually fund retirement, arguing that technological progress alone does not replace pensions, savings accounts or 401(k) plans.
Federal Reserve data already show that large portions of the population have limited or no retirement savings, underscoring how fragile many households’ financial futures remain even before factoring in long-term technological change.
AI may boost growth, not certainty
Some experts acknowledged that Musk’s broader point about productivity gains is plausible. Olivia Mitchell of Wharton’s Boettner Center for Pensions and Retirement Research said AI could reduce costs and improve efficiency over time.
But she stressed that economic gains from new technologies are rarely shared evenly. Even in a richer economy, she said, individuals would still need personal savings to buffer against uncertainty, policy shifts and uneven access to opportunity.
London Business School professor Ekaterina Abramova added that any future resembling universal economic security would depend more on political choices around redistribution than on AI itself.
History urges caution
Others pointed to history as a reminder of how often bold predictions fall short. James Ransom of University College London noted that past technological revolutions frequently concentrated wealth rather than spreading it evenly.
Innovation theorist John Nosta argued that Musk’s vision assumes unprecedented global coordination between governments, markets and societies. That challenge, he said, is far more complex than improving machine intelligence.
Planning still matters
While Musk imagines a future where abundance makes savings unnecessary, experts across finance and technology agree that betting personal security on that outcome is a gamble.
Until societies demonstrably deliver the kind of universal stability Musk predicts, specialists say traditional retirement planning remains a necessary safeguard — even in an AI-driven world.
Sources: Moonshots with Peter Diamandis podcast, Business Insider, Boston College Center for Retirement Research, Wharton Boettner Center, Federal Reserve
