You can get a very fast upper-bound estimator on distance using Manhattan distance (scaled for latitude), this should be good enough for rejecting 99.9% of candidates if they're not close (EDIT: since then you tell us they are close. In that case, your metric should be distance-squared, as per Lars H comment).
Consider this equivalent to rejecting anything outside a spherical-rectangle bounding-box (as an approximation to a circle bounding-box).
I don't do Ruby so here is algorithm with pseudocode:
Let the latitude, longitude of your reference point P (pa,po) and the other point X (xa,xo).
Precompute ka, the latitude scaling factor for longitudinal distances: ka (= cos(pa in°)). (Strictly, ka = constant is a linearized approximation in the vicinity of P.)
Then the distance estimator is: D(X,P) = ka*|xa-pa| + |xo-po| = ka*da + do
where |z| means abs(z). At worst this overestimates true distance by a factor of √2 (when da==do), hence we allow for that as follows:
Do a running search and keep Dmin, the fifth-smallest scaled-Manhattan-distance-estimate.
Hence you can reject upfront all points for which D(X,P) > √2 * Dmin (since they must be at least farther away than √((ka*da)² + do²) - that should eliminate 99.9% of points).
Keep a list of all remaining candidate points with D(X,P) <= √2 * Dmin. Update Dmin if you found a new fifth-smallest D. Priority-queue, or else a list of (coord,D) are good data structures.
Note that we never computed Euclidean distance, we only used float multiplication and addition.
(Consider this similar to quadtree except filtering out everything except the region that interests us, hence no need to compute accurate distances upfront or build the data structure.)
It would help if you tell us the expected spread in latitudes, longitudes (degrees, minutes or what? If all the points are close, the √2 factor in this estimator will be too conservative and mark every point as a candidate; a lookup-table based distance estimator would be preferable.)
Pseudocode:
initialize Dmin with the fifth-smallest D from the first five points in list
for point X in list:
if D(X,P) <= √2 * Dmin:
insert the tuple (X,D) in the priority-queue of candidates
if (Dmin>D): Dmin = D
# after first pass, reject candidates with D > √2 * Dmin (use the final value of Dmin)
# ...
# then a second pass on candidates to find lowest 5 exact distances