In the past, social security benefits and pension were sufficient to cover your expenses after your retirement. However, today these are not adequate to ensure financial freedom during your golden years.

You may invest in several retirement plans that not only provide financial security in the future but also offer tax advantages along with other benefits. However, there are multiple investment options, and making the right choice may be difficult. Here are the five best retirement investments for your consideration:

Retirement income funds
These are specialized types of mutual funds and automatically invest your money in different bonds and stocks.

Immediate annuities
Most annuities are more of insurance rather than investments. However, the purpose of annuities is to provide income, which is the primary objective of any kind of retirement investment. When you opt for an immediate annuity, you are availing assurance of income in the future.

Bonds
The purchase of bonds means investing your money with the government, municipality, or corporate. The bond issuers pay a predetermined interest for a specific period, and you receive your principal back on maturity. The interest income is an excellent way to ensure regularity during the post-retirement years. Bonds may be short, medium, or long term. These are further classified as floating-rate bonds and high-yielding bonds (that may offer a higher interest rate but may have a lower rating). You may buy individual bonds or purchase them in the form of bond exchange-traded funds. To meet your retirement goals, you may create a bond ladder that matches the maturity dates with your future cash requirements.

Dividend and dividend income funds
You may choose to invest in dividend income funds that invest in multiple dividend-paying stocks and are professionally managed. Dividends are an excellent way of increasing annual income, as companies pay higher dividends over the long-term. However, you need to be alert while investing in high dividend funds that deliver more than average yield. Often, these funds come with higher risks and you must consider these before making an investment decision.

Real estate investment trusts (REITs)
REITs are similar to mutual funds but invest in real estate. Professional teams invest and manage the properties, collect rental income, and pay all property-related expenses. The earnings through these investments are then distributed among the investors after deducting the management fee. REITs may either be publicly-traded or non-publicly traded trusts.

While the aforementioned are some of the best retirement investments, it’s important to park some portion of your principal in safe options. The primary objective of safe investments is to secure your principal and these avenues not focus on delivering higher income. Moreover, you must have an emergency reserve account that should be excluded from other investments and should be used for any unforeseen expenses during your retirement years.