An inflation-protected benefit is a Social Security benefit in which the real value of the benefit does not decline as the cost of living rises. All Social Security benefits, in most cases, are inflation-protected benefits because each year they adjust to accommodate the change in the cost of living. If there is a rise in the cost of living year over year, the Social Security Administration raises the amount of money that the participant receives. There is no deduction in the benefit amount if the cost of living stays the same or falls.