While planning for retirement, retirees are mostly confused from among the various options that are available. Mutual funds retirement plans have gained major importance these days. Mutual funds are an investment scheme which is managed professionally and brings people together to invest in bonds, stocks etc. Following are the advantages a mutual fund retirement plan has

• Safety: Mutual funds provide safety to retirees as the mutual funds are for the longer period and while they give you higher returns, they also provide protection from inflation. So the retirees can stay one step ahead of inflation.
• Tax Benefits: Retirement plans like IRA and 401(k)s are not taxable and exempt the investors from any capital gain taxes or dividend tax. Other sectored schemes of mutual funds released by the local and state governments are also tax-free.
• No annuity: For mutual funds, you need not buy annuities, as is the case of pension plans from insurance companies. You can buy it if you think it is beneficial for your poor health and old age. It is completely your choice.
• Flexible: Mutual funds retirement: plans are flexible and they do not have regular premium payment restrictions. There is also no restriction on partial withdrawals from retirement fixed income funds. One can withdraw partially or stop investing without being charged with any penalty.
• Start a business: All the retirees, who are workaholic, can work by using a retirement fund to start a business. They can use their retirement income fund from their mutual fund’s retirement plans and follow their passion.
• Options for various income groups- Mutual funds provide a variety of options to invest in. People with higher income groups can also make investments in high-income retirement funds like backdoor Roth IRA, 401 k after-tax contributions, and other options.

Mutual funds are a much safer option for the retirees because of the above advantages. The best retirement income funds options can be found easily online. You can also look for best retirement funds 2016 to gain an insight into all the funds.