This study was undertaken to test the persistence of financial risk tolerance over time as a way to determine how mutable risk attitudes are in practice.

Using a unique international panel dataset, this module documents the persistence of risk tolerance test scores over time. Initial risk tolerance test scores, explained more than 60 percent of retest scores. Other significant variables associated with retest risk tolerance scores were gender, age, and year of retest. Specifically, women’s scores were found to be lower at the retest. Older respondents exhibited lower risk tolerance scores at the retest, and compared to those who retested in 2014–2015, scores were lower when retested in 2011, 2012, and 2013. Essentially, initial test scores explained nearly all of the variance in retest scores.

A review of measurement issues is provided, along with a description of the methodology used to test the persistence of risk tolerance, a presentation of results, and a brief discussion of findings.