Believe it or not, seniors fear running out of cash more than they fear dying.And unfortunately, even retirees who have built a nest egg have good reason to be concerned - with the traditional approaches to retirement planning, income may no longer cover expenses. That means retirees are dipping into principal to make ends meet, setting up a race against time between dwindling investment balances and longer lifespans.Your parents' retirement investing plan won't cut it today.In the past, investors going into retirement could invest in bonds and count on attractive yields to produce steady, reliable income streams to fund a predictable retirement. 10-year Treasury bond rates in the late 1990s hovered around 6.50%, whereas the current rate is much lower.The effect of this drop in rates is substantial: over 20 years, the change in yield for a $1 million investment in 10-year Treasuries is over $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.One approach to recognizing appropriate stocks is to look for companies with an average dividend yield of 3% and positive average annual dividend growth. Numerous stocks hike dividends over time, counterbalancing inflation risks.Here are three dividend-paying stocks retirees should consider for their nest egg portfolio.CTO Realty (CTO) is currently shelling out a dividend of $0.38 per share, with a dividend yield of 7.43%. This compares to the REIT and Equity Trust - Other industry's yield of 4.28% and the S&P 500's yield of 1.6%. The company's annualized dividend growth in the past year was 14%. Check CTO Realty (CTO) dividend history here>>>Huntington Bancshares (HBAN) is paying out a dividend of $0.16 per share at the moment, with a dividend yield of 4.09% compared to the Banks - Midwest industry's yield of 2.36% and the S&P 500's yield. The annualized dividend growth of the company was 3.33% over the past year. Check Huntington Bancshares (HBAN) dividend history here>>>Currently paying a dividend of $0.35 per share, Movado (MOV) has a dividend yield of 4.65%. This is compared to the Retail - Jewelry industry's yield of 0% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 75%. Check Movado (MOV) dividend history here>>>But aren't stocks generally more risky than bonds?Yes, that's true. As a broad category, bonds carry less risk than stocks. However, the stocks we are talking about - dividend -paying stocks from high-quality companies - can generate income over time and also mitigate the overall volatility of your portfolio compared to the stock market as a whole.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're interested in investing in dividends, but are thinking about mutual funds or ETFs rather than stocks, beware of fees. Mutual funds and specialized ETFs may carry high fees, which could lower the overall gains you earn from dividends, undercutting your dividend income strategy. Be sure to look for funds with low fees if you decide on this approach.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 Up >>Want 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 CTO Realty Growth, Inc. (CTO): Free Stock Analysis Report Huntington Bancshares Incorporated (HBAN): Free Stock Analysis Report Movado Group Inc. (MOV): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research