I agree it is utopian, but it is aslo true that it is what communists believe. The end stage communist state is contingent on post-scarcity. That is to say, more can be voluntarily produced than people willingly consume.
This is not mutually exclusive with providing a minimum standard of living.
This becomes evident when you dig into the details of the phrase "From each according to his ability, to each according to his needs".
>Marx delineated the specific conditions under which such a creed would be applicable — a society where technology and social organization had substantially eliminated the need for physical labor in the production of things, where labor has become not only a means of life but life's prime want.[1] Marx explained his belief that, in such a society, each person would be motivated to work for the good of society despite the absence of a social mechanism compelling them to work, because work would have become a pleasurable and creative activity. Marx intended the initial part of his slogan, "from each according to his ability" to suggest not merely that each person should work as hard as they can, but that each person should best develop their particular talents.[15][16]
>Claiming themselves to be at a "lower stage of communism" (i.e. "socialism", in line with Vladimir Lenin’s terminology),[17] the Soviet Union adapted the formula as: "From each according to his ability, to each according to his work (labour investment)".[1]
Exchanging individual direction and rights for central planning and minimum standard of living is a characteristic of socialism.
https://en.wikipedia.org/wiki/From_each_according_to_his_abi...