Pensions were very much in focus last week starting with the annual Pension Awareness Day kicked off on the 15th of this month to the fact that thousands have opted to take money out of their pension pots. With this is mind, FE Trustnet takes a look at three well-regarded funds for those seeking a healthy retirement income source.

By now it is quite obvious that we as a nation do not have the same savings culture like large parts of Asia, for example. As campaigns like Pension Awareness Day do their best to try to get more people actively thinking about retirement, they mostly target those who still have a few years left as part of the workforce.

Savers facing retirement – or who are in retirement already – are faced with new challenges in finding sources of income, especially in these yield-constrained times where the average savings account offers very little.

The much celebrated Pension Freedom changes, which came into effect this April, have also armed savers with a greater say in the way they fund their retirement years.

For those edging closer to retirement, you are more likely to want to take on as little risk as possible – after all, imagine facing huge losses in the market just when you stop working and are reliant on your pension pot for income.

We take a look at three well-regarded funds, offering notable income levels worth considering…

CF Woodford Equity Income fund

FE Alpha manager Neil Woodford’s Equity Income fund needs little introduction as many column inches have been dedicated to the star manager.

The fund has been dominating fund sales since its launch last June, and with good reason. It has returned some 20.7 per cent, the number factoring in the recent market troubles.

It has been the highest returning fund in the IA Equity Income fund over the past twelve months, with the funds peers making on average half that.

Yield: 4 per cent
Annual charge: 1 per cent

Artemis Global Equity Income fund

This fund has generated a better return than its peers in the IA Global Equity Income sector, and generally the market, in every calendar year since its inception in 2010. The portfolio was initially defensively positioned with a clear focus on high-dividend paying companies and emerging markets.

The analysts at FE Research think that this fund is ideally suited for investors who want to receive a sustainable source of income but also do not want to forgo capital gains.

Jacob de Tusch Lec uses a proven approach to select stocks based on their dividend potential. The analysts at FE Research have been impressed not only by the manager’s capacity to read the macro-environment, but also his understanding of the dynamics of global equity markets.

Yield: 3.8 per cent
Annual charge: 1.5 per cent

Jupiter High Income fund

FE Alpha Manager Alastair Gunn and Rhys Petheram head up this £538m fund high-income, mixed-asset fund. The fund aims to generate income via equities and bonds with a typical weighting of 80 per cent towards equities.

On the equities side – Gunn uses views on global and UK economies to help identify attractive sectors – but with a main focus on fundamentals, and basing his valuation of a company on its cash flow, management strength, market position and the amount of income it can pay out.

The fund ranks in the top 10 in in its sector over the past year, as well as over the past five years.

Yield: 4.1 per cent
Annual charge: 1.5 per cent