Here's a revealing data point: older Americans are scared more of outliving wealth than of death itself.And retirees have good reason to be worried about making their assets last. People are living longer, so that money has to cover a longer period. Making matters worse, income generated using tried-and-true retirement planning approaches may not cover expenses these days. That means seniors must dip into principal to meet living expenses.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 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.Today's retirees are getting hit hard by reduced bond yields - and the Social Security picture isn't too rosy either. Right now and for the near future, Social Security benefits are still being paid, but it has been estimated that the Social Security funds will be depleted as soon as 2035.Unfortunately, it looks like the two traditional sources of retirement income - bonds and Social Security - may not be able to adequately meet the needs of present and future retirees. But what if there was another option that could provide a steady, reliable source of income in retirement?Invest in Dividend StocksAs a replacement for low yielding Treasury bonds (and other bond options), we believe dividend-paying stocks from high quality companies offer low risk and stable, predictable income investors in retirement seek.Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.One way to identify suitable candidates is to look for stocks with an average dividend yield of 3%, and positive average annual dividend growth. Many stocks increase dividends over time, helping to offset the effects of inflation.Here are three dividend-paying stocks retirees should consider for their nest egg portfolio.Kilroy Realty (KRC) is currently shelling out a dividend of $0.54 per share, with a dividend yield of 5.49%. This compares to the REIT and Equity Trust - Other industry's yield of 4.41% and the S&P 500's yield of 1.67%. The company's annualized dividend growth in the past year was 3.85%. Check Kilroy Realty (KRC) dividend history here>>>RPT Realty (RPT) is paying out a dividend of $0.13 per share at the moment, with a dividend yield of 4.78% compared to the REIT and Equity Trust - Residential industry's yield of 3.25% and the S&P 500's yield. The annualized dividend growth of the company was 8.33% over the past year. Check RPT Realty (RPT) dividend history here>>>Currently paying a dividend of $0.39 per share, Suncor Energy (SU) has a dividend yield of 5.19%. This is compared to the Oil and Gas - Integrated - Canadian industry's yield of 3.86% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 115.06%. Check Suncor Energy (SU) 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.A silver lining to owning dividend stocks for your retirement portfolio is that many companies, especially blue chip stocks, increase their dividends over time, helping offset the effects 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 Kilroy Realty Corporation (KRC): Free Stock Analysis Report Suncor Energy Inc. (SU): Free Stock Analysis Report RPT Realty (RPT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research