Many routers provide WPA2-PSK (TKIP), WPA2-PSK (AES), and WPA2-PSK (TKIP/AES) as options. TKIP is actually an older encryption protocol introduced with WPA to replace the very-insecure WEP encryption at the time. TKIP is actually quite similar to WEP encryption. TKIP is no longer considered secure, and is now deprecated. In other words, you shouldn’t be using it.
AES is a more secure encryption protocol introduced with WPA2 and it is currently the strongest encryption type for WPA2-PSK.
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