However, Mr Lalor noted the “deeply psychological” factors that influence the decision to set up an SMSF which, he believes, will become increasingly important.

“It is about responsibility and autonomy as well as the often-quoted desire for control and flexibility. These psychological factors can’t be substituted by a retail or industry fund offering some additional product features,” Mr Lalor said.

“We know from other aspects of their lives that Generation X tend to be individualistic and Generation Y tend to be technology-savvy, motivated by autonomy and wanting to take responsibility for important aspects of their lives.

“Self-managed superannuation should appeal even more to Generation X and Generation Y than it did to baby boomers,” he said.

Mr Lalor also stressed the role of technology in the popularity of SMSFs, noting that it has made setting up and managing an SMSF increasingly faster and more efficient in recent years.

“Whilst technology will help industry and retail funds deliver their services to members more efficiently in the future and help them tailor their generic offers to make them more appealing to discerning members, it seems that the most exciting technology developments are starting at the personal level and helping individuals achieve things never before achievable in an efficient manner by an individual,” he said.