Believe it or not, seniors fear running out of cash more than they fear dying.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.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 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.How can you avoid dipping into your principal when the investments you counted on in retirement aren't producing income? You can only cut your expenses so far, and the only other option is to find a different investment vehicle to generate income.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.BP (BP) is currently shelling out a dividend of $0.36 per share, with a dividend yield of 4.21%. This compares to the Oil and Gas - Integrated - International industry's yield of 2.6% and the S&P 500's yield of 1.68%. The company's annualized dividend growth in the past year was 10.15%. Check BP (BP) dividend history here>>>Cadence (CADE) is paying out a dividend of $0.22 per share at the moment, with a dividend yield of 3.21% compared to the Banks - Southeast industry's yield of 1.94% and the S&P 500's yield. The annualized dividend growth of the company was 10% over the past year. Check Cadence (CADE) dividend history here>>>Currently paying a dividend of $0.23 per share, Kimco Realty (KIM) has a dividend yield of 4.17%. This is compared to the REIT and Equity Trust - Retail industry's yield of 4.34% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 29.41%. Check Kimco Realty (KIM) 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.Combating the impact of inflation is one advantage of owning these dividend-paying stocks. Here's why: many of these stable, high-quality companies increase their dividends over time, which translates to rising dividend income that offsets the effects of inflation.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 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 BP p.l.c. (BP): Free Stock Analysis Report Kimco Realty Corporation (KIM): Free Stock Analysis Report Cadence Bank (CADE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research