Elon Musk Says Retirement Savings ‘Won’t Matter’ in 20 Years—but What If You’re a Homeowner?

Elon Musk is confident there’s no point in saving for the future anymore.

"Don't worry about squirreling money away for retirement in 10 or 20 years. It won’t matter," Musk said on the "Moonshots with Peter Diamandis” podcast earlier in January. 

His reasoning? Advances in AI, energy, and robotics will lead to abundance, making individual retirement savings “irrelevant.”

It is a bold claim, to be sure—and if you’re a homeowner, you may wonder whether it actually holds any truth, given the financial challenges that come with owning property, particularly in retirement.

We spoke to some financial experts, and they all agreed you should take Elon’s advice with a grain of salt and absolutely continue to save for your future.

Why experts believe you still need to save 

To begin, Robert R. Johnson, professor of finance at the Heider College of Business at Creighton University in Charlottesville, VA, urges homeowners not to change their thinking about retirement because of Musk‘s remarks or the potential for AI advancements.

“There’s usually a significant difference between what is forecasted to happen and what actually happens. After all, 50 years ago, everyone predicted we’d have flying cars by now,” Johnson says.

Sam Meenasian, vice president of sales and marketing operations at USA Business Insurance Services in Burbank, CA, agrees with Johnson and believes that Musk’s comments actually reinforce the importance of retirement planning that much more.

“AI could be a powerful tool, but the past has shown that economic transitions are always uneven, unpredictable, and often to the detriment of the middle-class families caught in the transition, making saving for the future essential,” explains Meenasian.

The value of home equity and savings 

Home equity, retirement accounts, and savings are more important today than ever before. 

Eric Croak, certified financial planner and president at Croak Capital in Toledo, OH, points out that regardless of what happens, being a homeowner puts you in a better position than not.

“When you’ve built up a lot of equity or paid off your home, you essentially own your biggest expense. That gives you stability, leverage, and cash flow—and that’s not something an algorithm can replicate,” says Croak.

Johnson explains that we’re all personally responsible for our own nest eggs. 

“In the era where pensions were the norm, retirement risk was shared across everyone. Some retirees died young, and others had greater longevity,” says Johnson. 

That's not the case anymore. Now, most of us have to plan for a longer life and collectively, we need to accumulate more wealth than people did in the world of guaranteed pensions.

“Once one gets to retirement age and hasn’t accumulated enough retirement savings, they only have two options left: continue working or accept a lower standard of living in retirement—and neither of them are good,” explains Johnson.

Favorable options, such as retiring, spending your savings, and having control of your life are invaluable—regardless of whether AI robots are doing all the work or not.

How to plan for an uncertain future 

The world may change when AI takes off. However, that doesn’t mean you should stop working toward a financially secure future. 

“For now, plan for retirement like you’re expecting to live in the same house for the next 30+ years, paying higher taxes and higher prices along the way,” says Croak.

In other words, prepare for a longer retirement, assuming that inflation and rising costs will continue. 

At the end of the day, the best way to hedge against uncertainty is to focus on things you can control: accumulating home equity, building traditional savings, and diversifying your investments. 

“If Elon happens to be right—congratulations! You’ll be swimming in wealth either way,” adds Croak.