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.For many years, bonds or other fixed-income assets could produce the yield needed to provide solid income for retirement needs. However, these yields have dwindled over time: 10-year Treasury bond rates in the late 1990s were around 6.50%, but today, that rate is a thing of the past, with a slim likelihood of rates making a comeback in the foreseeable future.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 StocksAs we see it, dividend-paying stocks from generally low-risk, top notch companies are a brilliant way to create steady and solid income streams to supplant low risk, low yielding Treasury and fixed-income alternatives.Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.A rule of thumb for finding solid income-producing stocks is to seek those that average 3% dividend yield, and positive yearly dividend growth. These stocks can help combat inflation by boosting dividends over time.Here are three dividend-paying stocks retirees should consider for their nest egg portfolio.Cadence (CADE) is currently shelling out a dividend of $0.22 per share, with a dividend yield of 3.28%. This compares to the Banks - Southeast industry's yield of 1.98% and the S&P 500's yield of 1.7%. The company's annualized dividend growth in the past year was 10%. Check Cadence (CADE) dividend history here>>>Chevron (CVX) is paying out a dividend of $1.42 per share at the moment, with a dividend yield of 3.19% compared to the Oil and Gas - Integrated - International industry's yield of 2.81% and the S&P 500's yield. The annualized dividend growth of the company was 5.97% over the past year. Check Chevron (CVX) dividend history here>>>Currently paying a dividend of $0.23 per share, Kimco Realty (KIM) has a dividend yield of 4.25%. This is compared to the REIT and Equity Trust - Retail industry's yield of 4.51% 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?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.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'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. FREE Report: The Metaverse is Exploding! Don’t You Want to Cash In? Rising gas prices. The war in Ukraine. America's recession. Inflation. It's no wonder why the metaverse is so popular and growing every day. Becoming Spider Man and fighting Darth Vader is infinitely more appealing than spending over $5 per gallon at the pump. And that appeal is why the metaverse can provide such massive gains for investors. But do you know where to look? Do you know which metaverse stocks to buy and which to avoid? In a new FREE report from Zacks' leading stock specialist, we reveal how you could profit from the internet’s next evolution. 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