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.In addition to the considerable drop in bond yields, today's retirees are nervous about their future Social Security benefits. Because of certain demographic factors, it's been estimated that the funds that pay the Social Security benefits 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 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.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.Independence Realty Trust (IRT) is currently shelling out a dividend of $0.14 per share, with a dividend yield of 3.52%. This compares to the REIT and Equity Trust - Residential industry's yield of 3.64% and the S&P 500's yield of 1.8%. The company's annualized dividend growth in the past year was 16.67%. Check Independence Realty Trust (IRT) dividend history here>>>Mid-America Apartment Communities (MAA) is paying out a dividend of $1.25 per share at the moment, with a dividend yield of 3.4% compared to the REIT and Equity Trust - Residential industry's yield of 3.64% and the S&P 500's yield. The annualized dividend growth of the company was 21.95% over the past year. Check Mid-America Apartment Communities (MAA) dividend history here>>>Currently paying a dividend of $0.2 per share, OFG Bancorp (OFG) has a dividend yield of 3.03%. This is compared to the Banks - Northeast industry's yield of 2.25% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 66.67%. Check OFG Bancorp (OFG) 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're thinking, "I want to invest in a dividend-focused ETF or mutual fund," make sure to do your homework. It's important to know that some mutual funds and specialized ETFs charge high fees, which may diminish your dividend gains or income and thwart the overall objective of this investment strategy. If you do want to invest in fund, research well to identify the best-quality dividend funds with the least charges.Bottom LineRegardless of whether you select high-quality, low-fee funds or stocks, looking for a steady stream of income from dividend-paying equities can potentially lead you to a solid and more peaceful retirement. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Independence Realty Trust, Inc. (IRT): Free Stock Analysis Report MidAmerica Apartment Communities, Inc. (MAA): Free Stock Analysis Report OFG Bancorp (OFG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research