Elon Musk Claims AI Will End Retirement Saving — Expert Says That Advice Is Risky
Written by
Gabrielle Olya
Edited by
Molly Sullivan
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Elon Musk recently made headlines after suggesting that Americans may not need to worry about saving for retirement in the future.
In an interview, Musk said people won’t have to worry about “squirreling money away for retirement in 10 or 20 years,” because it “won’t matter.” On the “Moonshots with Peter Diamandis” podcast, he argued that AI will soon make it possible for people to have “whatever you want,” eliminating the need to save altogether.
Musk has also predicted that AI will usher in a system of “universal high income,” where people would no longer need to work to support themselves.
While that future may sound appealing — especially to Americans anxious about retirement — financial experts say relying on it coming to fruition could be a costly mistake. Here’s why Adam Bergman, a self-directed retirement expert and founder of IRA Financial, believes Musk’s advice is not only unrealistic, but potentially dangerous for U.S. workers planning their financial futures.
Why US Retirement Experts Warn Against Relying on Government Income
Bergman said the biggest problem with Musk’s vision is the assumption that the government will be able to provide a reliable financial backstop for everyone. In his view, Americans should already be concerned about the long-term health of existing programs like Social Security.
“Social Security can go bankrupt in the next five years,” he said. “So we’ve seen what [can happen with] a system that’s government-created, that’s meant to target a financial pitfall of getting old.”
Expanding that model to provide guaranteed income for all Americans, regardless of age or income, raises serious concerns, he added.
“Having a similar framework for people of all ages and all income brackets to get free money from the government is crazy,” Bergman said. “We don’t have the money to pay for it.”
How Universal Income Could Fuel Inflation in the US Economy
Even if some form of universal high income became possible, Bergman warned that it could come with unintended economic consequences — particularly inflation. He pointed to the recent past as a cautionary example.
“We saw just in COVID, [the stimulus checks] created inflation that we’re still dealing with today,” he said. “So if you give everyone $50,000, you’re just going to create more inflation. The prices are just going to increase, and nothing’s going to get solved.”
In other words, more money doesn’t necessarily translate into more purchasing power, especially if costs increase alongside income.
Why AI Is More Likely To Change Jobs Than Eliminate Them
Musk’s argument also assumes that AI will replace most human labor, making work optional and goods effectively free. Bergman believes that’s unlikely.
“I think there will be some job displacement, but I believe AI is going to transform [and create] different opportunities in the economy,” he said.
Rather than eliminating work altogether, Bergman expects AI to reshape how Americans work and the types of jobs available.
“I don’t think Americans are going to want to sit home and just collect a paycheck from the government,” he said.
How Americans Can Still Prepare Financially for Retirement
Given the uncertainty around AI, government programs and the economy, Bergman said the safest approach is to assume personal responsibility for retirement planning, rather than betting on an unproven future.
“You’ve got to save for retirement,” he said. “That’s going to be your safety net.”
He recommended that Americans continue contributing to traditional retirement vehicles, including 401(k) plans and Roth IRAs, while looking for additional ways to build long-term savings.
“To just say, ‘It’s the end of the world, I can’t do anything about it,'” Bergman said, “I think it’s reckless.”
For now, retirement experts say the smartest strategy isn’t relying on a future safety net but building one yourself.
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