Elon Musk became the world's first trillionaire last week after SpaceX debuted on the stock market with a valuation of $1.77tn. The initial public offering (IPO) has raised concerns among Americans about the impact on their retirement savings, as many are indirectly invested in the company through index funds.
Millions of US workers have retirement accounts tied to the stock market via 401(k) plans, which often invest heavily in index funds tracking major indices. This means that even those who do not directly buy shares in SpaceX or other AI-focused companies may still end up owning them. Musk pushed for a rule change to allow SpaceX shares into index funds earlier than typical, potentially increasing exposure for many savers.
In a survey by the Guardian, over 150 respondents expressed unease about having their savings tied to major tech firms, citing fears over widening inequality, market instability, and the sustainability of the AI boom. Tim, a 62-year-old engineer from California, said: 'We've all been forced into a giant casino. Basically my entire retirement is in the S&P 500. Not out of choice.'
Stephen, a 33-year-old engineer from Michigan, described his disgust: 'I think it's abhorrent that my savings and retirement funds are tied so intricately to these tech companies, especially when they cannot be held accountable by investors.' Matt Reynolds, a professor in Washington state, added: 'I'm alarmed at big tech's market consolidation and its impact on my savings.'
Some respondents have taken action to avoid exposure. Mia, a writer from Washington DC, said she has 'intentionally not invested in the stock market' and called the system 'a ridiculous scam'. Pedro, a retired businessman from Colorado, has divested from index funds altogether, urging others to do the same to 'drive those stocks back to reality'.
