Will saving for retirement be 'irrelevant' in 20 years? Elon Musk thinks so

Musk argues AI and automation may make long-term savings unnecessary

Billionaire entrepreneur Elon Musk has once again sparked debate on the future of money and work by suggesting that saving for retirement could become irrelevant within the next 10 to 20 years. His remarks, made on a recent podcast, raise important questions for Indian savers who rely heavily on long-term planning to secure their post-retirement years.

 

What Musk is predicting

Speaking on the Moonshots with Peter Diamandis podcast, the Tesla and SpaceX founder said people should not worry too much about setting aside money for retirement far into the future. According to Musk, rapid advances in artificial intelligence, robotics and energy will fundamentally change how economies function.

 

He believes these technologies will sharply boost productivity, allowing machines to perform most tasks more efficiently than humans. As a result, societies could move towards a phase of “abundance”, where goods and services are widely available at very low cost.

 

In such a scenario, Musk predicts the emergence of what he calls a “universal high income”, where everyone receives sufficient income to live comfortably, regardless of employment status.

 

A future of abundance, but with risks

Musk’s vision includes major improvements in everyday life. He has said that access to better healthcare could become widespread, and education could be freely available to anyone who wants to learn. Human work, he has previously suggested, may become optional within the next two decades.

 

However, Musk has also warned that the transition to this future will not be smooth. He described the road ahead as “bumpy”, with potential social unrest along the way. More importantly, he raised concerns about the loss of purpose in a world where jobs no longer matter.

 

“If you get everything you want, is that actually the future you want?” Musk asked, pointing to the psychological challenge of finding meaning without work.

 

So what should Indian savers do?

For Indian households, retirement planning remains closely tied to realities such as rising healthcare costs, limited social security, inflation, and uneven access to public services. Most retirees depend on personal savings, provident funds, pensions, and insurance to meet basic needs.

 

While technological progress may reshape jobs and incomes, there is no clear roadmap on when, or if, a universal income system will become a reality, especially in developing economies like India.

 

The practical takeaway

Musk’s comments offer a glimpse into a possible long-term future, not a financial plan. For now, experts broadly agree that Indian savers should continue to:

• Save regularly for retirement
• Diversify investments across assets
• Factor in inflation and healthcare costs
• Avoid assuming that technology alone will secure future finances

Until structural safety nets are firmly in place, retirement savings remain a necessity rather than an option.