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Elon Musk said recently that advances in AI could eventually make saving for retirement unnecessary, a claim that drew skepticism from economists and financial planners who say the idea ignores basic economic realities.

Speaking on the “Moonshots with Peter Diamandis” podcast, Musk argued that AI and robotics will drive productivity so sharply higher that goods and services could become nearly free. In that environment, Musk suggested, traditional retirement planning would no longer matter.

“Don’t worry about squirreling money away for retirement in 10 or 20 years,” he said. “It won’t matter.”

Musk has long argued that AI will lead to what he calls “universal high income,” a future in which basic needs are met automatically and work becomes optional. If that vision comes true, he believes, money itself could lose much of its relevance.

“If you actually get all the stuff you want, is that actually the future you want?” Musk said in the interview. “Because it means that your job won’t matter.”

Financial experts say betting personal security on that outcome is risky, particularly for those already facing rising costs and uncertain retirement prospects.

“If someone in their 30s or 40s hears this and decides to stop contributing to their 401(k), that lost time compounds forever,” Ted Jenkin, a certified financial planner, wrote in a Fox News column. “You can’t make that up later.”

For most Americans, retirement is not a theoretical exercise. It requires decades of saving to cover housing, healthcare, and daily living expenses. According to Fidelity, a 65-year-old couple retiring in 2025 can expect to spend about $345,000 on healthcare alone over the course of retirement, not including long-term care.

Housing remains the largest expense for many retirees, often costing more than $20,000 per year. At the same time, Social Security’s main trust fund is projected to be depleted by 2033, which could lead to reduced benefits if Congress does not intervene.

Delaying contributions by just a few years can reduce retirement balances by hundreds of thousands of dollars over a lifetime. For many workers, one of the hardest parts of retirement planning is knowing whether they’re on track, and what adjustments actually make sense.

Savings rates, investment mix, taxes, and timing all interact in ways that aren’t always obvious, especially as markets and policies change.

Services like SmartAsset are designed to connect investors with vetted fiduciary advisors based on location, asset level, and financial goals.

Instead of cold-calling firms or sorting through dozens of profiles, you answer a short questionnaire about your situation. The platform then matches them with up to three advisors who actively work with clients like you.

The advantage isn’t just convenience, it’s comparison. Seeing multiple advisors side by side makes it easier to evaluate differences in approach, experience, and specialization.

For investors who want a clearer picture of their retirement trajectory, SmartAsset’s free matching tool can be a practical starting point.

There is also little evidence that technological breakthroughs automatically benefit everyone equally.

“New technologies have a pretty terrible track record of boosting wealth evenly across society,” said James Ransom, a research fellow at University College London.

Past waves of automation and digitization have often increased productivity while widening income gaps, displacing workers, and concentrating wealth. Economists say there is no guarantee that AI-driven growth would be distributed broadly without major policy intervention.

“Money will always buy something incredibly valuable called optionality,” Jenkin said. That optionality can help households manage medical emergencies, family obligations, job losses, or policy changes that affect taxes or benefits. Without that buffer, individuals are more vulnerable to economic shocks.

For some, building that buffer also means looking beyond traditional savings accounts and stock portfolios. Rising housing costs and persistent inflation have pushed more people to explore income-producing assets, particularly real estate.

Arrived offers a way to invest in shares of rental homes and vacation properties without taking on the responsibilities of being a landlord.

Investors can start with as little as $100, while Arrived handles tenant management, maintenance, and day-to-day operations.

The platform is backed by investors including Jeff Bezos and has paid out more than $19 million in dividends to hundreds of thousands of registered users.

Arrived also recently launched a secondary market that allows investors to buy and sell shares in individual properties, adding flexibility.

For those looking to diversify retirement savings with hands-off real estate exposure, Arrived provides a way to participate without taking on extra work.

“A future of ‘universal high income’ depends less on AI and more on governments choosing to redistribute its gains,” said Ekaterina Abramova, a professor at London Business School. Innovation theorist John Nosta has similarly described that transition as a “civilizational-scale” problem, requiring cooperation across governments, industries, and borders.

Periods of economic uncertainty often push investors to think differently about risk. Inflation, government debt, and market volatility have led some retirees and near-retirees to look beyond traditional stocks and bonds for long-term protection.

With gold near all time highs, one option some investors consider is allocating a portion of their portfolio to physical precious metals.

Preserve Gold is a U.S.-based firm that helps investors acquire IRS-approved gold, silver, platinum, and palladium for retirement accounts or direct ownership.

The company specializes in IRA rollovers from 401(k)s and traditional IRAs, as well as insured home delivery for clients who prefer possession of precious metals.

Preserve Gold positions itself around transparency, offering price matching, zero-fee buybacks on qualifying metals, and waived storage and custodian fees for up to five years depending on account size.

For investors with at least $10,000 to start who view gold as insurance rather than a short-term trade, working with a dedicated specialist can help avoid costly mistakes around storage, taxes, and product selection.

AI is likely to reshape labor markets and productivity in meaningful ways over the coming decades. But the timing, scope, and economic impact of those changes remain uncertain.

Alicia Munnell, director of the Center for Retirement Research at Boston College, was blunt in her assessment of Musk’s comments.

“He has no idea how the American lives, how important Social Security and 401(k)s are to maintaining people’s standard of living.” she said to Business Insider.

Until clearer evidence emerges that AI will fundamentally eliminate financial scarcity, advisers say the basic rules of retirement planning remain unchanged. Start early, save consistently, and plan for uncertainty.

For workers navigating rising costs and longer lifespans, relying on a technological breakthrough to replace decades of saving is a gamble few can afford to take.

Image: Shutterstock

This article Elon Musk Says AI Will Make Saving for Retirement Unnecessary. Experts Say That’s Wrong originally appeared on Benzinga.com

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