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.
Just one in 10 could see themselves getting there by saving money.
But TD said accumulating seven figures in time for retirement is doable by following these steps:
- Start putting $100 a month into a registered retirement savings plan at the age of 25;
- Increase that to $250 at the age of 30; $500 at 35; $750 at 40;
- 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.
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."
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.
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