Elon Musk's bold AI prediction: 'Saving money is pointless'

For generations, saving for retirement has been a cornerstone of financial planning. Elon Musk, however, sees a future in which that advice may no longer hold. The billionaire believes advances in artificial intelligence (AI) and robotics could create such an abundance of goods and services that money itself may eventually lose much of its importance.

“Saving money for the distant future is pointless with the advent of super intelligent abundance,” the Tesla and SpaceX chief wrote in a post on X, highlighted by technology publication Futurism.

His latest remark reflects a prediction he has made repeatedly: AI-powered machines could transform production, reduce costs and fundamentally change the relationship between employment, income and wealth.

Why Musk believes saving could become pointless

Musk's vision centres on an economy powered by advanced AI and robots. He expects machines to take on an increasing range of tasks, while automated factories produce goods and services on a much larger scale.

As production becomes cheaper and supply increases, he believes people could eventually enjoy an abundance of products and services without needing the same level of income they do today.

In an interview with The Economist, Musk predicted that AI could surpass the combined intelligence of humanity within around five years. He also described a future in which people could have almost anything they wanted.

Musk has questioned the need for retirement savings before

This is not the first time Musk has suggested that traditional retirement planning could become irrelevant.

During a podcast appearance in January, as reported by Fortune, he advised people not to worry about accumulating savings for retirement over the next 10 or 20 years.

“You won't need to save for retirement. If any of the things that we've said are true, saving for retirement will be irrelevant,” he said.

His remarks were conditional on his predictions about AI and technological progress becoming reality. He did not give a date for when people might no longer need retirement savings.

Could AI make money irrelevant?

Musk has also explored the idea that money itself could eventually lose its importance.

During a discussion with entrepreneur Peter Diamandis, executive chairman of the XPrize Foundation, he argued that AI-powered machines could produce goods and services at such a scale that human labour would no longer be essential to much of the economy.

“I think money will stop being relevant at some point in the future,” Musk said.

However, cheaper production does not necessarily mean everyone will have equal access. Questions remain over who will own the machines, how resources such as energy and land will be managed, and how the benefits of automation will be shared.

Musk proposes universal high income to tackle AI job losses

Musk has also acknowledged that automation could disrupt employment, potentially leaving large numbers of people without traditional jobs.

In April, he proposed what he calls “universal high income” as a way to address AI-driven unemployment. The idea involves governments making direct payments to citizens so they can continue accessing goods and services.

In a post on X, Musk described federal government payments as the best way to tackle unemployment caused by AI. He has argued that rising productivity could help support such payments without necessarily fuelling inflation.

How governments would fund the proposal, determine payment levels and distribute the money remains unclear.

A future prediction, not financial advice

Musk's vision raises bigger questions about the future of work, wealth and financial security. Even if AI dramatically increases productivity and makes some goods and services cheaper, access to resources, ownership of technology and wealth distribution will remain important considerations.

For now, his prediction remains a vision of a possible AI-driven future, not an established economic reality. Traditional retirement planning still matters, and Musk's comments should not be taken as a reason to stop saving.