For over a decade, the $1 million figure for investable wealth has been treated as the starting point for defining what is a high net worth individual - although inflation has eroded that figure.

The general consensus among investors is that it would take at least $5 million in personal wealth for them to feel wealthy, rather than benchmarking this against a specific asset level. Only 10 per cent define wealth as never having to work again, while a smaller percentage cite being able to afford a luxurious lifestyle .

UBS Wealth Management Americas said one of the most surprising findings of the report was that four in five investors provide financial support for adult children or aging parents, which it added has an impact on the definition of a “comprehensive” financial plan.

The cost of healthcare and long-term care remains the top personal concern among investors, as cited by 27 per cent, while their children’s and grandchildren’s financial situations rank second , followed by the ability to afford retirement , and the potential to outlive assets . Highlighting how these views alter the definition of a “comprehensive” financial plan, UBS found that investor confidence soars to 85 per cent - versus 57 per cent with a more traditional financial plan - when plans are focused on long-term healthcare expenses and providing financial support across multiple generations.

Adding to a number of previous studies illustrating differences in the wealth management perceptions and approaches among female and male family members, UBS' latest findings suggest that men are more likely than women to feel financially responsible for other generations within their family and exhibit "greater enjoyment" in doing so. Only 21 per cent of women said they feel responsible for the financial well-being of their grandchildren, for example, compared to 31 per cent of men. While a larger proportion of both men and women feel responsible for the financial well-being of their adult children and parents, this was again found to be more the case among men.

Meanwhile, the firm said it has seen investors holding 23 per cent in cash on average over the past three years, allowing them to be more “aggressive” with other investments. Investors are also “bucketing money” based on use, which makes them feel more in control of investment risk, it added.  

“Investors are using significant cash holdings as a type of ‘security blanket’ to give themselves peace of mind, but also to allow them to feel comfortable getting out there and participating in the market again,” said Emily Pachuta, head of investor insights, UBS Wealth Management Americas.

For its fourth Investor Watch survey, UBS surveyed 4,450 investors between July 23 and July 1. Respondents were at least 25 years of age with $250,000 in investable assets; half had at least $1 million in investable assets. A total of 2,675 men and 1,775 women participated.