Becoming a millionaire in time for retirement is a more attainable goal than most young Canadians think, according to a major Canadian bank. But then again, $1 million isn’t what it used to be.

TD Canada Trust on Wednesday released survey results showing three-quarters of respondents ages 18 to 34 said it is unlikely they’ll be worth $1 million or more by the time they retire.

In fact, one-third said their best bet for becoming a millionaire is winning the lottery, while just one in 10 could see themselves getting there by saving money.

But TD said accumulating seven figures in time for retirement is possible by following these steps: Start putting $100 a month into a registered retirement savings plan (RRSP) at the age of 25; increase that to $250 at the age of 30; $500 at 35; $750 at 40; and keep RRSP savings at $1,000 a month between the ages of 50 and 65.

The calculations assume an annual return on RRSP investments of 6.8 per cent.

“Time is on the side of young Canadians, particularly if they get started saving early in a registered retirement savings plan,” said TD Canada Trust senior vice-president Carrie Russell.

“With a plan that sees as little as $100 a month [in savings] starting at the age of 25, and then increases as they age and they earn more income, [$1 million] is a lot more attainable than [survey respondents] would have originally perceived it to be.”

But is $1 million enough?

Robert Abboud, an Ottawa-based financial planner, said having savings of $1 million can give someone a “comfortable” retirement currently, but “not outstanding if they have no other pension.”

He added that there’s “no way” a person who’s 25 now and retires with $1 million in 40 years would feel rich.

Abboud noted that having $1 million at your disposal by the age of 65 would give a person access to $50,000 a year if they live for 20 more years, not including any investment income that might be earned with that money.

“The millionaire concept, I think that was 20, 30 years ago,” Abboud said. “That should be changed. A million dollars is just a fun number, and I think that’s why there’s a connotation tied to it. But it is certainly no longer the wealthy.

“The clients that we have that have $1 million or more are not what you would think of as millionaires. They shop at Walmart. They drive Honda Accords. They’re very regular, middle-class folks.”

Abboud said TD’s suggested savings plan is reasonable. While the climb from $100 a month in savings at 25 to $1,000 at 50 might seem steep, he noted that people tend to make more money later in their careers, and are often not supporting their children any more or paying down a mortgage.

Still, he said achieving $1 million in retirement savings is “a challenge” for many, given the average debt-to-income level of nearly 150 per cent.

For those who can’t afford the monthly savings schedule laid out by TD, Russell suggested they “contribute what they can” — even if it doesn’t eventually lead to $1 million in the bank.

The bank said a one-time RRSP contribution of $10,000, when factoring in compound interest and “modest” returns of six per cent a year, would more than triple over 20 years and be worth $57,000 after 30 years.

TD said its survey suggests many young Canadians overestimate how much money needs to be saved to hit the $1-million mark.

For example, 16 per cent said it would take monthly savings of between $1,000 and $2,000, while just as many assumed it required more than $2,000 being put away each month.

TD’s survey of 689 Canadians was conducted online by Angus Reid between Feb. 4 and Feb. 5. TD said the results were weighted by education, age, sex and region to make it representative of Canada’s 18-34 population. No margin of error was provided.

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