Strange but true: seniors fear death less than running out of money in retirement.And older Americans have legitimate reasons for this worry, even if they have dutifully saved for their golden years. That's because the traditional ways people manage retirement may no longer provide enough income to meet expenses - and with people generally living longer, the principal retirement savings is exhausted far too early in the retirement period.In today's economic environment, traditional income investments are not working.Years ago, investors at or close to retirement could put money into fixed-income assets and depend on appealing yields to generate consistent, solid pay streams to fund a comfortable retirement. 10-year Treasury bond rates in the late 1990s floated around 6.50%, but unfortunately, those days of being able to exclusively rely on Treasury yields to fund retirement income are over.The impact of this rate decline is sizable: over 20 years, the difference in yield for a $1 million investment in 10-year Treasuries is more than $1 million.And lower bond yields aren't the only potential problem seniors are facing. Today's retirees aren't feeling as secure as they once did about Social Security, either. Benefit checks will still be coming for the foreseeable future, but based on current estimates, Social Security funds will run out of money in 2035.So what's a retiree to do? You could cut your expenses to the bone, and take the risk that your Social Security checks don't shrink. Or you could find an alternative investment that provides a steady, higher-rate income stream to replace dwindling bond yields.Invest in Dividend StocksDividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to replace low risk, low yielding Treasury and bond options.Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.Going beyond those familiar names, you can find excellent dividend-paying stocks by following a few guidelines. Look for companies that pay a dividend yield of around 3%, with positive annual dividend growth. The growth rate is key to help combat the effects of inflation.Here are three dividend-paying stocks retirees should consider for their nest egg portfolio.Mid-America Apartment Communities (MAA) is currently shelling out a dividend of $1.25 per share, with a dividend yield of 3.26%. This compares to the REIT and Equity Trust - Residential industry's yield of 3.39% and the S&P 500's yield of 1.74%. The company's annualized dividend growth in the past year was 21.95%. Check Mid-America Apartment Communities (MAA) dividend history here>>>Pfizer (PFE) is paying out a dividend of $0.4 per share at the moment, with a dividend yield of 3.63% compared to the Large Cap Pharmaceuticals industry's yield of 2.77% and the S&P 500's yield. The annualized dividend growth of the company was 2.56% over the past year. Check Pfizer (PFE) dividend history here>>>Currently paying a dividend of $1.5 per share, The PNC Financial Services Group, Inc (PNC) has a dividend yield of 3.77%. This is compared to the Banks - Major Regional industry's yield of 3.62% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 20%. Check The PNC Financial Services Group, Inc (PNC) dividend history here>>>But aren't stocks generally more risky than bonds?Overall, that is true. But stocks are a broad class, and you can reduce the risks significantly by selecting high-quality dividend stocks that can generate regular, predictable income and can also decrease the volatility of your portfolio compared to the overall stock market.An advantage of owning dividend stocks for your retirement nest egg is that numerous companies, particularly blue chip stocks, raise their dividends over time, helping alleviate the impact of inflation on your potential retirement income.Thinking about dividend-focused mutual funds or ETFs? Watch out for fees.If you prefer investing in funds or ETFs compared to individual stocks, you can still pursue a dividend income strategy. However, it's important to know the fees charged by each fund or ETF, which can ultimately reduce your dividend income, working against your strategy. Do your homework and make sure you know the fees charged by any fund before you invest.Bottom LineSeeking steady, consistent income through dividends can be a smart option for financial security in retirement, whether you invest in mutual funds, ETFs, or in dividend-paying stocks. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MidAmerica Apartment Communities, Inc. (MAA): Free Stock Analysis Report The PNC Financial Services Group, Inc (PNC): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research