American billionaire stated in a podcast that saving for retirement will soon become pointless.
Saving for retirement has been a cornerstone of personal finances for over a century, but it could soon become irrelevant, says Elon Musk.
"One recommendation I have is: Don't worry about putting money aside for retirement in 10 or 20 years. It won't matter," said the CEO of Tesla and SpaceX in the latest episode of the "Moonshots with Peter Diamandis" podcast, as reported by Business Insider.
"If any of the things we talked about come true, saving for retirement will be irrelevant," Musk added.
A future where everyone has everything they want
The world's richest man, whose net worth exceeds $600 billion, described a future where advances in artificial intelligence, energy, and robotics will increase productivity, creating an "abundance" of resources that would allow everyone to benefit from a "high universal income."
"The good future is that anyone can have whatever they want," Musk said. This would mean "better healthcare than anyone has today, available to everyone within five years. No shortage of goods and services. You can learn anything you want about anything, for free," he continued.
The Road to Paradise Goes Through Transition
However, Musk warned of an "accumulative" transition to this utopian world, marked by abrupt changes and social disruptions. At the same time, he pointed out a possible loss of purpose in life.
Elon Musk is known for the impact of Tesla's electric cars on the auto industry and for revolutionizing the aerospace industry with SpaceX's reusable rockets. His companies are developing autonomous vehicles, humanoid robots, brain-computer interfaces, AI assistants, and other innovations, while he is on track to become the world's first trillionaire.
From Utopia to Reality
Despite his track record, Musk's latest prediction clashes strongly with the reality faced by many Americans. Years of persistent inflation, high interest rates, and sluggish wage growth have led to a crisis in the standard of living.
Millions of people feel excluded from obtaining a college degree, access to quality healthcare, owning a home, or having children. A comfortable retirement also seems like an unattainable goal, with surveys showing that most Americans are not saving enough.
In this context, Musk's optimistic vision of an abundant future may seem like a wish - or even dangerous advice if it leads people to stop saving. However, the world doesn't change as he expects, and many people could find themselves in difficulty in retirement, concludes the American publication.
T.D.