Here's an eye-opening statistic: older Americans are more afraid of running out of money than of death itself.Also, retirees who have constructed a nest egg have valid justifications to be concerned, since the traditional ways to plan for retirement may mean income can no longer cover expenses. Some retirees are now tapping their principal to make a decent living, pressed for time between decreasing investment balances and longer life expectancies.The tried-and-true retirement investing approach of yesterday doesn't work 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 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.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 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.BGSF (BGSF) is currently shelling out a dividend of $0.15 per share, with a dividend yield of 4.83%. This compares to the Business - Services industry's yield of 0% and the S&P 500's yield of 1.71%. The company's annualized dividend growth in the past year was 25%. Check BGSF (BGSF) dividend history here>>>Evolution Petroleum (EPM) is paying out a dividend of $0.12 per share at the moment, with a dividend yield of 6.42% compared to the Oil and Gas - Exploration and Production - United States industry's yield of 0% and the S&P 500's yield. The annualized dividend growth of the company was 60% over the past year. Check Evolution Petroleum (EPM) dividend history here>>>Currently paying a dividend of $0.35 per share, NRG Energy (NRG) has a dividend yield of 3.28%. This is compared to the Utility - Electric Power industry's yield of 3.33% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 7.69%. Check NRG Energy (NRG) 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 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 LinePursuing a dividend investing strategy can help protect your retirement portfolio. Whether you choose to invest in stocks or through low-fee mutual funds or ETFs, this approach can potentially help you achieve a more secure and enjoyable retirement. 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 BGSF, Inc. (BGSF): Free Stock Analysis Report NRG Energy, Inc. (NRG): Free Stock Analysis Report Evolution Petroleum Corporation, Inc. (EPM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research