Six in ten (59%) investors with over £500,000 in investable assets are concerned about the threat of recession and the damage high inflation will do to their portfolios, according to a new report.

Investors under 55 (69%) were more likely to have concerns, according to a survey of high-net-worth (HNW) investors by wealth manager Charles Stanley.

Although a third felt confident (27%) and knowledgeable (30%) when it comes to making investment decisions, many were more cautious (29%) and risk averse (32%) in the current climate.

Almost a third (29%) said they have become more cautious in the past year due to more volatile market conditions (22%), the increased cost of living (18%) and political instability (10%).

Despite concerns around inflation, a quarter (26%) of those surveyed thought higher interest rates were a good thing due to higher returns now available from savings accounts.

One in five (21%) HNW investors felt personally impacted by the threat of recession and high inflation, rising to 36% of under 55s.

The report found that while HNW investors may have concerns most have yet to take any action, with just 14% having changed the way they invest over the past year.

Those who had made changes (14%) or intended to make changes to the way they invest soon (22%) were looking to invest in safer, lower risk products and hold more in cash deposits.

A third (34%) had put money into safer assets, with a further 20% intending to do so. Over one in five (21%) had put more in cash, with a further 20% intending to do so.

Men (41%) and investors under 55 (58%) were more likely to be considering changes but most had yet to act.

Saving for retirement (63%) was the most common reason for HNW investors to be investing, followed by protecting wealth (55%) and building wealth for themselves and future generations (40%).

Andrew Meigh, managing director of Financial Planning at Charles Stanley, said: “It has been a turbulent time for investors, but it appears that HNW investors may be in a state of paralysis, and this is not the time to shy away from investing and planning for the future. Quite the opposite, this should be a time to take stock, re-evaluate objectives, and ensure your investment strategy is aligned to your life goals.

“It’s unsurprising that many people are erring on the side of caution and prioritising protecting their wealth. But with high inflation eroding the value of cash, playing it too safe can also lead to considerable losses in real terms."

• Charles Stanley surveyed over 200 HNW investors in October.