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.Your parents' retirement investing plan won't cut it today.For example, 10-year Treasury bonds in the late 1990s offered a yield of around 6.50%, which translated to an income source you could count on. However, today's yield is much lower and probably not a viable return option to fund typical retirements.While this yield reduction may not seem drastic, it adds up: for a $1 million investment in 10-year Treasuries, the rate drop means a difference in yield of more than $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 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.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.BP (BP) is currently shelling out a dividend of $0.36 per share, with a dividend yield of 4.24%. This compares to the Oil and Gas - Integrated - International industry's yield of 2.52% and the S&P 500's yield of 1.64%. 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 3.07% compared to the Banks - Southeast industry's yield of 1.9% 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 $0.25 per share, Hanmi Financial (HAFC) has a dividend yield of 3.86%. This is compared to the Banks - West industry's yield of 2.31% and the S&P 500's current yield. Annualized dividend growth for the company in the past year was 108.33%. Check Hanmi Financial (HAFC) 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 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. 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 Hanmi Financial Corporation (HAFC): Free Stock Analysis Report Cadence Bank (CADE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research