Australia’s cash rate was cut last week to a meagre 1.75%. Whilst this was great news for borrowers, it certainly was not the case for savers or those looking for low risk sources of income.

When interest rates were higher many people could simply live off of the interest from the cash they had in the bank. But when you consider that 1.75% interest on $1 million is just $17,500 per year, you can see why this is not a great option any more.

Although it comes with risks, the share market is perhaps the best option investors have at creating income for retirement. By choosing wisely I believe it is possible to mitigate some of the risk, whilst earning an income far beyond what you would get from a bank account.

I believe these three shares could be a great starting point:

Asaleo Care Ltd (ASX: AHY)

The manufacturer of personal care brands including Sorbent, Libra and Tena reported strong full year earnings at the end of the February despite facing significant headwinds from the weak Australian dollar and higher pulp costs.

The good news is that it recently reaffirmed its guidance of low-to-mid-single digit earnings per share growth for FY 2016, which is the kind of growth I would expect from such a defensive share. Furthermore, the company is expected to pay an estimated 5.2% dividend in FY 2016.

In my opinion Asaleo’s defensive qualities, together with its dividend make this a great addition to a retirement portfolio.

Coca-Cola Amatil Ltd (ASX: CCL)

It has been a bit of bumpy ride for investors in Coca-Cola Amatil this year, which has resulted in it sitting 6% lower year-to-date. Whilst sugary drinks may be declining in popularity, Coca-Cola Amatil is far more than this.

The company’s product assortment stretches far and wide, with everything from coconut water to teas. Thanks to its distribution model, I believe it can respond effectively to changing consumer tastes that will enable it to grow steadily for some time to come.

There is also the very lucrative prospect of a growing consumer class in Indonesia for it to sell to in the future. I believe this will help the company continue to sustain its average dividend growth of 3.3% per annum for the last 10 years.

Coca-Cola Amatail is expected to pay a partially-franked 5.2% dividend in FY 2016.

SAI Global Limited (ASX: SAI)

SAI Global probably doesn’t get talked about as much as it should. For 10 consecutive years this Australian risk management firm has grown its revenue successfully.

The company operates its business in a diverse range of sectors, providing varied solutions that include food certification, supplier compliance, and health and safety to name just three. I like this diversity because I believe it provides a certain level of security against any potential sector slowdowns impacting results.

It is expected to provide shareholders with a partially franked dividend of 5% in FY 2016. According to CommSec, this is expected by analysts to grow by 10% per annum through until FY 2018.

Finally, if you’d like more great dividend ideas for your portfolio then don’t forget to take a look at this fourth dividend share. I believe it could produce strong results in the future and it is well worth spending a couple of minutes getting to know more about it today.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.