I once responded honestly on an employee “self-evaluation” form if I had any particular goals. Since the form didn’t ask about “career” goals, I responded that I’d like to sail singlehanded across the Atlantic someday. (I knew I was going against what was actually being requested, but since I already had the job I didn’t think the response would hurt.)
I got kidded about it by management for years afterward (even those who hadn’t been on distribution for my first review, since I was so low-level at the time), but they all knew who I was because of that response, and it never seemed to weigh negatively against me.
I also answered the “How do you see yourself in x years?” also honestly (and succinctly) as “Improving.”
Part of the test of this question is to see what kind of person you are: are you an ass-kissing sycophant who tells the recruiter what they want to hear? (every company needs a fair number of these drones, so it’s not really dishonorable), or are you a steely-eyed climber? (which every company desperately needs, but not at every position and level) or are you creative, intelligent, personable and able to think on your feet to give an “acceptable” answer that is also honest? (the kind no company can have enough of). Be the latter. You can develop the steely-eyed determination later if you really want to, but being personable and intelligent – and displaying that with a certain modesty and flair – will get you to the second interview.