A study of investors around the world finds that in Europe, those born between 1981 and 1996 are more accepting of risks – a finding that generally tracks with the idea of younger adults behaving in this way.

The desire of European Millennial investors (those born between 1981 and 1996) to make riskier investments amid market volatility is higher than the generations above them, as younger investors more actively respond to and are influenced by external market events, a study by professional services firm EY says. 

The EY Global Wealth Survey, which gleaned views of more than 2,600 wealth management clients globally – and 600 in Europe – found that more than one-third of European Millennials (38 per cent) are allocating to riskier investments, compared with just a quarter (24 per cent) of Baby Boomers’ (born between 1946 and 1964). This is despite over half (57 per cent) of the Millennials surveyed saying that their investing needs have become more complex (compared with 35 per cent of Boomers) and 35 per cent acknowledging that they do not meet with their wealth advisor to review their goals frequently enough.

Amid prolonged economic uncertainty, demand for professional advice to interpret economic, market and political shocks is heightened for many investors. However, European demand lags the global average. Some 38 per cent of European Millennials and 34 per cent of Boomers seek advice from their financial advisor in response to political instability or uncertainty, compared with 42 per cent and 33 per cent respectively at a global level. 

More than half (51 per cent) of European Millennials regularly seek additional independent financial advice in response to portfolio volatility, compared with 58 per cent within this age group globally. 

As for preferred channels, 47 per cent of all European investors speak to advisors virtually, 30 per cent opt for face-to-face interaction, and 23 per cent use social media or apps. This has changed since the previous EY Global Wealth Research Report in 2021, which found that 14 per cent of European private wealth clients preferred virtual advice, 33 per cent preferred face-to-face interaction, and 18 per cent used social media or apps. 

The report also found that the appetite to switch or move money from one provider to another is highest within the younger investor age brackets. According to the report, Millennials in European markets were more than twice as likely to switch, add a new provider or move money, than Boomers.