In order to ensure that benefits keep up with inflation, the Social Security Administration (SSA) typically makes a cost of living adjustment (COLA) each year. For 2025, the SSA has delivered a 2.5% COLA — and the benefit increase appears to be getting mixed reviews from retirees.

In a survey of 2,000 retirees conducted by The Motley Fool, 54% of the respondents said that the new COLA for this year wasn’t enough. Breaking the results of the survey down a bit further, 30% think that this year’s COLA is completely insufficient, and 24% think that it’s somewhat insufficient.

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Even if future COLAs come in higher than this year’s level, stretching your Social Security benefits to cover costs in retirement can be difficult. The good news is that there are steps you can take to minimize your reliance on Social Security and set yourself up for wealth in your golden years.

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1. Make a personalized budget and stick to it

While it may sound like an obvious or simple step to improving your finances, having a workable budget and sticking to it is a foundation-level way to ensure you’re positioned for a comfortable retirement. Even basic expenses can add up quickly, and a lack of oversight when it comes to discretionary spending can mean that you wind up holding on to less of your take home pay than you had anticipated.

Having a sound understanding of your personal finances and living within those parameters will help ensure that you are on the right path toward a comfortable retirement. And while inflation for housing, food, and other essentials can make saving more difficult, taking control of your financial future through budgeting can limit your exposure to pricing creep in other categories.

In addition to having a well-defined budget, it’s a good idea to assess how well you’re sticking to your plan and how much money you’re actually managing to save at regular intervals. It can also help you avoid lifestyle inflation, which is a tendency that sees people increase their spending as their earnings rise. If you’re earning more money but wind up spending beyond the extra cash you’re bringing in, you could be sabotaging your plans for a wealthy retirement.

2. Invest on a regular schedule

Once you’ve outlined your personal budget and made adjustments as needed, you should have a good idea how much extra cash you’re bringing in each month. If you don’t already have an emergency fund, you should make sure you have money set aside for one. When that important financial base is covered, you can start formulating your investment strategies.

Keeping some of the extra money you bring in each month in a savings account can be a good idea and help you generate some interest income, but there are other investment opportunities that are far better for growing wealth over time. Of course, many of these other investment avenues also come with higher levels of risk and volatility. Because the value of stocks and other assets can fluctuate significantly even in relatively short periods of time, it’s best to keep an even keel and stick to a steady, predetermined investment schedule.

Situations will inevitably pop up that shake your confidence and raise concerns about the future, but sticking to a well-defined investment schedule can help you turn otherwise worrying times into periods of opportunity. For example, the S&P 500 index saw a dramatic crash in 2008 in conjunction with the last big financial crisis and moved even lower in 2009. Things looked pretty bleak at the time, but you could have invested in stocks at fantastic prices if you held steady and kept to an investment schedule.

3. Own a diversified portfolio of high-quality, long-term investments

While it is possible to score big wins with riskier short-term investments, history shows that it pays to play the long game. If you prioritize investing in high-quality opportunities and have a long-term approach, you don’t have to take on huge risk in order to secure life-changing returns.

An investment in the Vanguard S&P 500 ETF (NYSEMKT: VOO), which is an exchange traded fund that tracks the S&P 500 index, would have given you a total return of roughly 95% over the last five years after factoring in dividends. Over the last 10 years, it would have delivered a total return of approximately 255%.

In addition to investing in ETFs that track indexes or industries, you might also want to consider individual investments in blue chip stocks, growth stocks, and dividend stocks that are backed by strong businesses. Investing in real estate, bonds, and other quality assets can help you further diversify your holdings and strengthen your overall financial footing.

When it comes to setting yourself up for a wealthy retirement, it’s a marathon — not a sprint. But with a well-tailored personal budget, a realistic investment schedule, and a commitment to building a diversified portfolio of high-quality assets, you can minimize your reliance on Social Security and set yourself up to be living the good life.

The $22,924 Social Security bonus most retirees completely overlook

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.

View the “Social Security secrets” »

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.