A U.S. Senate committee held a hearing recently that focused on the need for financial education and income security for older Americans.
As part of National Financial Literacy Month, the U.S. Senate Special Committee on Aging held a hearing titled “Empowering Seniors Through Financial Literacy.”
Chairman Rick Scott (R-FL) and Ranking Member Kirsten Gillibrand (D-NY) conducted the session that brought together expert witnesses from the Financial Industry Regulatory Authority (FINRA), the American Bankers Association Foundation, AARP, and the financial planning community.
Lawmakers were told that financial fraud targeting older Americans is on the rise and growing more sophisticated. FINRA said that reported fraud losses reached $15.9 billion in 2025, a sharp increase from $12 billion the previous year. Witnesses urged Congress to take action to strengthen protections against fraud, expand financial education and give advisors more tools to intervene to protect investors.
Those testifying at the hearing emphasized the importance of financial literacy while calling for a coordinated approach that leverages education, training, partnerships, and legislation to protect older Americans’ finances.
“For older Americans, financial literacy is not a luxury; it is key for building wealth, protecting savings and preserving autonomy,” said Christine Kieffer, Interim President of the FINRA Investor Education Foundation.
But she stressed that more than education is needed to prevent fraud. “It must be paired with scam awareness and what we call persuasion literacy,” Kieffer said, referring to the ability to recognize emotional manipulation tactics commonly used by fraudsters.
Sen. Scott announced the release of a bipartisan 2026 Financial Literacy Booklet called “Guarding Your Nest Egg: A Financial Resource for Older Adults”, to help older Americans manage their finances, avoid scams, and plan for a secure retirement.
“For so many Americans, especially our seniors, it’s hard to find the information,” Sen. Scott. “And when you do find it, it’s often incredibly complicated. As a country, we have done a poor job of ensuring people know their options and what route will work best for their needs.”
He added that older Americans can use financial literacy to protect themselves against threats to their savings. “When they understand how their benefits work, they make better decisions,” he says.
According to Kieffer of FINRA, the most damaging scams targeting older investors include investment fraud, impersonation schemes and relationship-based scams, with tech support and lottery scams also disproportionately affecting seniors. She added that older adults suffer significantly higher median losses than younger victims when they are targeted by fraudsters. Two-thirds of the older victims experience anxiety, depression or sleep disruption after being defrauded.
“Fraudsters are using advanced tools, including AI, to impersonate loved ones and build trust quickly,” said Carly Roszkowski, vice president of financial resilience programming at AARP.
She said older Americans are being targeted through scams that appear to be legitimate, including fake investment opportunities and family impersonations.
“These scams are designed to create urgency and emotional pressure, which can override even strong financial instincts,” Roszkowski said.
She added that AARP provides easy-to-use digital tools that enable older adults to make informed decisions about their financial future and bolster their long-term retirement security.
Roszkowski pointed out that the primary responsibility falls on seniors to educate themselves on how to guard against fraud and protect their savings.
“The retirement system now shifts risk to the individuals, but education and support never caught up,” said Roszkowski in her testimony.
“Financial literacy works – but only when it’s practical, sustained, timely, and paired with decision support,” she added. Witnesses also noted the growing complexity of fraud schemes that use artificial intelligence, voice cloning, and psychological manipulation.
Legislation to help victims recover from financial fraud is now drawing support from lawmakers from both parties. A bipartisan bill, the Tax Relief for Victims of Crimes, Scams and Disasters Act, would allow victims to deduct certain fraud losses to help lessen the impact of being victimized.
Among the witnesses was Scott Kahan, a New York-based CFP professional testifying on behalf of the CFP Board. He cited the role of the financial planning industry in detecting unusual account activity that might be a red flag for financial scams.
“Financial planners can act as financial first responders,” Kahan said, noting they are often the first to notice signs of manipulation.
Kahan called for measures to help expand access to professional financial advice for many Americans, including tax incentives.
“Many people don’t use a financial planner for retirement planning. They might think they don’t have enough money or believe free help online is enough,” says Kahan.
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