New research from UBS Wealth Management Americas finds that young investors appear to be spooked by the financial crisis, creating the most fiscally conservative generation since the Great Depression.

Based on an online survey of U.S. investors, the firm reports that, while millennials (age 21-36) describe their risk tolerance as either conservative or somewhat conservative, their average asset allocation is extremely conservative, with the average portfolio 52% in cash, compared to 23% cash for other investors.

“Millennials seem to be permanently-scarred by the 2008 financial crisis,” said Emily Pachuta, head of investor insights at UBS Wealth Management Americas. “They have a Depression Era mindset largely because they experienced market volatility and job security issues very early in their careers, or watched their parents experience them, and it has had a significant impact on their attitudes and behaviors.”

The firm reports that millennials are emerging as a generation of savers who are skeptical about long-term investing and markets. It says that only 12% of millennials say that they would invest found money in the market, and only 28% see long-term investing as a pathway to success. The research also found that millennials are worried about their parents after seeing their retirement and investing plans seriously disrupted by unprecedented market volatility.

Additionally, it notes that, within the millennial group, a large majority believe the road to success requires hard work (69%), saving and living frugally (45%), and a good education (37%). It notes financial freedom is the single most important factor of success (48%) to these investors; and, that they say a household income of $220,000 defines success.

“Conventional wisdom has categorized millennials as ‘entitled’ and ‘lazy’ because they have more than their parents and grandparents did. But this study counters that hypothesis,” says Pachuta. “Having witnessed both the technology boom and the collapse of global markets, it has made millennials concerned, but resilient, and optimistic for the future. They’re conservative, similar to the WWII generation coming out of the Great Depression, not resting on their laurels, but rather working hard for their wealth and success, making sacrifices because they believe their goals are achievable.”

The survey was carried out between December 31, 2013 and January 7, 2014 online by an outside research firm. 4,165 U.S. investors responded to the survey, including 1,169 millennials.