The data – collected between January 2012 and July 2014 – indicates that individuals born in the 1980s through to the early 2000s show no material difference in risk tolerance compared with Generation X individuals, those born between the early 1960s and early 1980s.
However, the data also shows 'millennials' are significantly more willing to take on risk than are baby boomers.
69 per cent of millennials are more risk tolerant than the average 60 year old, FinaMetrica found.
The firm's co-founder and director, Geoff Davey, said the general perception that younger generations favour conservative financial behaviour was not reflected by the data.
“If it is true that millennials are more financially conservative, risk tolerance is not the reason,” he said.
Millennials have lived through two major bear markets since reaching adulthood and these experiences have impacted their financial decision-making, Mr Davey suggested.
“Since then, job insecurity and rising unemployment, the commodity downturn and fears about global and Australian economic growth have forced many millennials to delay certain milestones that have traditionally categorised adulthood, including home ownership and starting a family,” he said.
