Hearings to examine empowering seniors through financial literacy, focusing on tools to protect savings, prevent fraud, and promote independence.

1[Senate Hearing 119-446]2[From the U.S. Government Publishing Office]34                                                    S. Hrg. 119-44656                       EMPOWERING SENIORS THROUGH7                      FINANCIAL LITERACY: TOOLS TO8                    PROTECT SAVINGS, PREVENT FRAUD,9                        AND PROMOTE INDEPENDENCE10=======================================================================1112                                HEARING1314                               BEFORE THE1516                       SPECIAL COMMITTEE ON AGING1718                          UNITED STATES SENATE1920                    ONE HUNDRED NINETEENTH CONGRESS2122                             SECOND SESSION2324                               __________2526                             WASHINGTON, DC2728                               __________2930                             APRIL 15, 20263132                               __________3334                           Serial No. 119-283536         Printed for the use of the Special Committee on Aging3738[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]3940        Available via the World Wide Web: http://www.govinfo.gov4142                               __________4344                    U.S. GOVERNMENT PUBLISHING OFFICE4564-009 PDF                  WASHINGTON : 202646=======================================================================47                       SPECIAL COMMITTEE ON AGING4849                     RICK SCOTT, Florida, Chairman5051DAVE McCORMICK, Pennsylvania         KIRSTEN E. GILLIBRAND, New York52JIM JUSTICE, West Virginia           ELIZABETH WARREN, Massachusetts53TOMMY TUBERVILLE, Alabama            MARK KELLY, Arizona54RON JOHNSON, Wisconsin               RAPHAEL WARNOCK, Georgia55ASHLEY MOODY, Florida                ANDY KIM, New Jersey56JON HUSTED, Ohio                     ANGELA ALSOBROOKS, Maryland57                              ----------58                McKinley Lewis, Majority Staff Director59                Claire Descamps, Minority Staff Director6061                        C  O  N  T  E  N  T  S6263                              ----------6465                                                                   Page6667Opening Statement of Senator Rick Scott, Chairman................     168Opening Statement of Senator Kirsten E. Gillibrand, Ranking69  Member.........................................................     37071                           PANEL OF WITNESSES7273Christine Kieffer, Senior Director and Interim Head, Office of74  Investor Education, FINRA, Washington, DC......................     475Sam Kunjukunju, Vice President of Consumer Education, American76  Bankers Association Foundation, Washington, DC.................     677Carly Roszkowski, Vice President of Financial Resilience78  Programming, AARP, Washington, DC..............................     779Scott Kahan, CFP, President & Senior Financial Planner, Financial80  Asset Management Corporation, Chappaqua, New York..............     98182                                APPENDIX83                      Prepared Witness Statements8485Christine Kieffer, Senior Director and Interim Head, Office of86  Investor Education, FINRA, Washington, DC......................    2687Sam Kunjukunju, Vice President of Consumer Education, American88  Bankers Association Foundation, Washington, DC.................    4789Carly Roszkowski, Vice President of Financial Resilience90  Programming, AARP, Washington, DC..............................    5691Scott Kahan, CFP, President & Senior Financial Planner, Financial92  Asset Management Corporation, Chappaqua, New York..............    709394                        Questions for the Record9596Sam Kunjukunju, Vice President of Consumer Education, American97  Bankers Association Foundation, Washington, DC.................    8198Carly Roszkowski, Vice President of Financial Resilience99  Programming, AARP, Washington, DC..............................    82100Scott Kahan, CFP, President & Senior Financial Planner, Financial101  Asset Management Corporation, Chappaqua, New York..............    85102103                       Statements for the Record104105Defense Credit Union Council Statement...........................    89106107                       EMPOWERING SENIORS THROUGH108                      FINANCIAL LITERACY: TOOLS TO109                    PROTECT SAVINGS, PREVENT FRAUD,110                        AND PROMOTE INDEPENDENCE111112                              ----------113114                       Wednesday, April 15, 2026115116                                        U.S. Senate117                                 Special Committee on Aging118                                                    Washington, DC.119    The Committee met, pursuant to notice, at 3:30 p.m., Room120SD-216, Hart Senate Office Building, Hon. Rick Scott, Chairman121of the Committee, presiding.122    Present: Senator Scott, Moody, Husted, Gillibrand, and Kim.123124                 OPENING STATEMENT OF SENATOR125                      RICK SCOTT, CHAIRMAN126127    The Chairman. The U.S. Senate Special Committee on Aging128will now come to order.129    I'd like to start today's hearing by asking you to think130about someone you love. We all have somebody we love. I would,131first off, think about our five-year-old granddaughter that132turns six tomorrow. She's so excited about her birthday. Maybe133it's a parent, or a grandparent, or even a neighbor you've134lived down the street from your whole life. Someone who worked135hard their entire career, did everything they could to set136themselves up for retirement, with the information available to137them.138    Now, ask yourself, ask yourself, is that enough? Does that139person know when the best time to claim their Social Security140benefits is? Do they know what happens to their monthly check141if you claim it at 62, versus 67, versus 70? Do they know the142difference between a Medicare Advantage plan and a Medigap143supplement? Do they know what questions to ask before handing144their savings over to a financial planner?145    Chances are, they don't. It's not entirely their fault. For146so many Americans, and especially our seniors, it's hard to147find the information. When you do find it, it's often148incredibly complicated, and it might be biased. As a country,149we have done a poor job of ensuring people know their options150and what route will work best for their needs. I wonder how AI151answers these questions, it will be interesting, and it's152having real consequences on our seniors' lives.153    Right now, nearly half of older American households earn154less than what's needed to cover basic living expenses;155housing, health care, transportation, food, the basics, and156they've all gone up in cost. Social security, which is about 78157percent of retirees. What they depend on, only replaces about15840 percent of pre-retirement income, on average. Sometimes,159people don't think about that. The math is hard. The reality is160stark. There's little room for error.161    At the same time, older Americans are being forced to make162some of the most consequential financial decisions of their163entire lives; when to retire, when to claim benefits, how to164draw down savings without outliving them, how to evaluate165insurance products, how to protect a home and estate. One166thing, like in our state, people are frustrated. You buy a167house, and your property insurance keeps going up, or your HOA168fees. When I was growing up, if you got your house paid off,169there was almost no other cost.170    These aren't easy questions, and too many seniors are171answering them alone, without clear guidance, under real172pressure, and with less of a cushion than they expected. The173result becomes a guessing game, where they hope for the best,174and often, fear for the worst but you can't blame them. Too175often, the resources they are supposed to help people best176prepare are buried on government websites, written in language177designed for policy experts, and delivered too late. I just178learned yesterday, when the FDA does a recall, they just put it179on a website. That's all they do, so you have no idea. It's180fascinating. No idea. Who would think that would be a problem?181    The challenges don't stop there. On top of all that, the182scammers come calling. You know, I get on a daily basis now,183and I delete it, and I hit send, somebody that has said I'm184approved for a new credit line. Every day, it's a different185number. Every day. In 2020, fraud and scam cost older Americans186nearly five billion. These criminals are not amateurs. They use187tools like artificial intelligence, voice cloning, government188impersonation, and more to attack us all. They do their189homework. They know exactly what to say and exactly how to say190it. For all the work, they are counting on one thing: that191nobody ever warned their victim about what to look for. That192needs to change.193    Financial literacy is one of the most powerful and most194underused tools we have to protect older Americans, not just195from fraud, but across the board. When seniors understand how196their benefits work, they make better decisions. They know how197to read a financial statement and recognize bad actors. They're198harder to deceive. When they understand the difference between199a legitimate investment and a pitch that's too good to be true,200they protect themselves.201    I got a letter from a Canadian law firm that said they202think somebody died that was related to me because they had the203last name, Scott, and they said they would split it with me and204it was something like eight million, or ten million, or twelve205million bucks and so, it looked like a nice letterhead from a206law firm. I looked up. I got on the web, and I looked up the207law firm. It looked like a legitimate law firm, but they didn't208have any lawyers.209    When they understand the difference between legitimate210investment and pitch that's too good to be true, they protect211themselves. When they know where to turn for trusted help, they212know they're not navigating this alone and the best part? This213doesn't require a new government program or more federal214bureaucracy. It doesn't require more spending to be thrown at215the problem. It requires clear information, trusted messengers,216and the commitment to actually get that information to people's217hands.218    This is exactly what this Committee set out to do, and219today, I'm proud to announce the upcoming release of our--it's220from both the ranking member and me. It's a new resource,221"Guarding Your Nest Egg: A Financial Resource Guide for Older222Adults." This package will cover the decisions that matter most223in retirement; Social Security, Medicare, housing, charitable224giving, disaster preparedness, and planning for the unexpected.225    We also provide clear guidelines as to what a scam looks226like, and how to guard yourself against them. Plain language227tools you can actually use. It's available today at228aging.senate.gov, because every older American in this country229deserves the tools to protect what they spent a lifetime230building. Not more red tape, not more bureaucracy, just clear231information, and the freedom to use it.232    Now, let me turn it over to the ranking member, who's been233a pleasure to work with on this Committee.234235                 OPENING STATEMENT OF SENATOR236             KIRSTEN E. GILLIBRAND, RANKING MEMBER237238    Senator Gillibrand. Thank you, Chairman Scott.239    I'm very grateful that we're having this hearing today. I'm240very excited about our report. I think it's going to be great.241I think people are going to benefit from it and use it. Thanks242to the witnesses for being here. I appreciate your expertise,243and your willingness to come help inform this debate so that we244can hopefully do good things for our seniors and help them.245    April is recognized as National Financial Literacy Month,246and serves to raise awareness about the importance of financial247education and income security. Over 11,000 Americans turn 65248every day, and longer lifespans translate into spending more249years in retirement, fueling a need to carefully plan and to250strategically save. These aging demographics also place a251strain on our national, state, and local budgets, as well as252our healthcare programs.253    Recently, the President shared that in his estimation,254"It's not possible to take care of Medicaid and Medicare. They255can do it on a state basis. You can't do it on the federal256level." I would like to offer a strong counterargument to this257statement. Since 1965, when Medicaid and Medicare were signed258into law for older Americans, the disabled, and people with259limited resources, the American people have expected these260programs to be there to help take care of them and their loved261ones, when they need them.262    Just as government plan, develop, and budget for public263programs, so do the American people when they're saving for264their own lives. No matter the circumstance, whether they are265focused on wealth management, tax strategies, building an266emergency savings fund, or simply navigating, paying for health267insurance premiums or skilled nursing costs in retirement,268Americans are simply doing the best they can to financially269plan and provide for themselves and their families.270    CDC data shows that approximately 44 percent of adults over27165 are diagnosed with a disability. However, many people272struggle to see themselves in these health statistics, or to273develop a future plan for a special needs adult or child and274despite individuals finding the time in their busy lives to275build financial goals, and striving to adopt a commitment to276savings, the unexpected always happens. Suddenly, you have an277injury, a loss of a job, or a death in the family, and it could278be the family's breadwinner, requiring financial stabilization,279resilience, and a new path forward.280    The Consumer Financial Protection Bureau serves individuals281who suffer a financial shock, and victims of financial fraud282and different scams, by providing resources and educational283materials. We recognize that more needs to be done,284strategically, to coordinate across government to better285protect older adults from financial abuse and elder abuse.286    I look forward to hearing from Americans and how they can287become better empowered to secure their own future through288enhanced financial competency, and what opportunities exist to289improve financial and digital literacy in our education system.290I also welcome your views on how we tackle persistent gaps in291financial and digital literacy in underserved communities, and292for women who are frequently responsible for caregiving and293providing for multigenerational households.294    Thank you, Mr. Chairman.295    The Chairman. Thank you, Ranking Member.296    Now, I'd like to welcome our witnesses to join us for297today's hearing. Our first witness is Christine Kieffer, senior298director and interim head of FINRA's Office of Investor299Education. FINRA is the frontline watchdog for America's300investment markets, responsible for overseeing broker-dealers,301enforcing the rules that protect investors, and make sure that302people selling financial products actually meet the standards303required to do so.304    Christine leads FINRA's investor education mission, where305they work on developing the tools, resources, and programs that306help everyday Americans, including older Americans, understand307their financial options and protect themselves from bad actors.308    Thank you for being here, and please begin your testimony.309310        STATEMENT OF CHRISTINE KIEFFER, SENIOR DIRECTOR311312              AND INTERIM HEAD, OFFICE OF INVESTOR313314                EDUCATION, FINRA WASHINGTON, DC315316    Ms. Kieffer. Good afternoon, Chairman Scott, Ranking Member317Gillibrand, and members of the Committee. My name is Christine318Kieffer, and I serve as interim head of investor education at319FINRA. I'm honored to be here to offer insights on the role of320financial literacy in empowering seniors and preventing fraud.321    FINRA is a self-regulatory organization whose mission is to322protect investors and preserve market integrity. The member323firms and associated professionals we oversee are deeply324committed to the issues discussed today. For older Americans,325financial literacy is not a luxury. It's an essential set of326skills needed for building wealth, protecting savings, and327preserving autonomy. A devastating loss at the hands of a328scammer can undo a lifetime of work, and severely impact both329mental and physical health.330    Today, I would like to emphasize three points. Financial331literacy is protective, it is only part of the solution, and332success requires a team effort. First, financial literacy is a333critical buffer against the predictable and unpredictable334challenges of aging. Individuals with higher financial literacy335are more likely to have emergency savings, better able to336manage unexpected costs, and less susceptible to scams.337Financial literacy matters not only in older age, but as we338age. To support evidence-based programming, the FINRA339Foundation undertakes and sponsors research to help340policymakers and other stakeholders address financial literacy341gaps.342    Second, financial literacy alone cannot provide adequate343protection against scams at scale. It must be coupled with344awareness of specific scams, and a fluency in the tactics of345persuasion or persuasion literacy. Collectively, these skills346help individuals defend against emotional manipulation and347safeguard their assets. To maintain effectiveness, however,348scam prevention messaging must be widely disseminated and349frequently, and we must employ other tools, including350enforcement and regulatory action to protect Americans.351    Third, tackling financial fraud requires a collaborative352approach. Cybersecurity and fraud threats are often353sophisticated operations, orchestrated by organized criminals354across the globe, demanding a unified response. FINRA does its355part to detect, prevent, and respond to these threats by356working with a network of collaborators developing and357distributing fraud prevention resources, and training consumers358and professionals, including our member firms, law enforcement,359federal and state regulators, social workers, and mental health360professionals.361    FINRA's member firms are on the front lines of investor362protection. As a regulator, we are continuously improving our363response to evolving threats. Early last year, we launched364FINRA Forward, a series of initiatives to modernize our365regulatory approach, including expanding our cybersecurity and366fraud prevention activities. It also includes making367enhancements to our rules that assist firms in safeguarding the368accounts of older and vulnerable adults and in March of this369year, we launched the Financial Intelligence Fusion Center,370which is a secure forum where firms can receive and share371timely, actionable cybersecurity and fraud threat intelligence372to protect their customers and businesses.373    Our collaboration extends to Congress, too. Last year, we374hosted a fraud prevention and response training for375constituent-facing staff. One office contacted us after the376training to request assistance helping a constituent who was on377the precipice of being victimized. The caseworker later shared378that their intervention was successful, and the constituent379walked away from the scam attempt unharmed.380    Encouraged by this feedback, in May, we will be expanding381this program with the launch of the Frontline Responders382Program, a training that will equip congressional offices with383the expertise to help constituents identify and report fraud,384and find additional support. FINRA has long been committed to385protecting senior investors and combating financial fraud. We386look forward to lending our support to your efforts. Thank you.387    The Chairman. Thank you. Our next witness, Sam Kunjukunju,388vice president of consumer education at the American Bankers389Association Foundation. The ABA represents banks of every size390around the country, and the foundation is dedicated to helping391Americans build the financial knowledge they need to make smart392decisions at every stage of life.393    Sam leads their consumer education work, and he understands394something that doesn't get said enough: banks are often the395first institution to notice when something has gone wrong for a396senior customer. Whether it's a sudden wire transfer, an397unusual withdrawal, or a pattern, that doesn't just add up,398banks are often the first to notice.399    Thanks for being here. Please begin your testimony.400401          STATEMENT OF SAM KUNJUKUNJU, VICE PRESIDENT402403            OF CONSUMER EDUCATION, AMERICAN BANKERS404405             ASSOCIATION FOUNDATION, WASHINGTON, DC406407    Mr. Kunjukunju. Chairman Scott, Ranking Member Gillibrand,408and members of the Committee, thank you for the opportunity to409testify at today's hearing. My name is Sam Kunjukunju. As you410mentioned, I'm the vice president of consumer education at the411American Bankers Association Foundation, a subsidiary of the412American Bankers Association, that develops programs to help413banks support the financial well-being of their customers and414communities.415    As you noted earlier, America is aging. By 2030, one in416five people will be aged 65 and older. At the same time, elder417financial exploitation is rising. Between 2024 and 2025, the418FBI observed a nearly 60 percent increase in reported financial419losses, and a 37 percent increase in complaints among older420people. The FTC estimates losses might have been as high as421$81.5 billion in 2024 alone among older adults.422    Given this reality, the ABA and the ABA Foundation works423with banks on a four-pronged strategy to help protect older424adults. First, educating consumers. Second, training bankers.425Third, cultivating partnerships with law enforcement and adult426protective services, and fourth, leveraging technology.427    In 2016, the ABA Foundation launched the Safe Banking for428Seniors program to equip bankers with tools to educate older429adults. We provide bankers with presentation, slides, videos,430handouts, and a variety of different materials to deliver431community workshops. The program supports older adults and432their families by focusing on preventing exploitation,433strengthening financial caregiving, and managing money. It434covers topics such as avoiding scams, preventing identity435theft, digital safety matters, choosing a financial caregiver,436understanding powers of attorney, and retiring with limited437resources. To date, more than 2,000 banks have participated in438the program.439    We also collaborate with federal partners such as the FBI,440the Secret Service, and eight other agencies to produce441infographics on scams targeting older adults, from check442washing and cryptocurrency investment scams, to government443imposter and tech support scams and we run national awareness444campaigns like Banks Never Ask That, and Practice Safe Checks445to reinforce simple steps consumers can take to prevent fraud.446    Beyond the consumer education campaigns, we work with447bankers to recognize, respond to, and report elder financial448exploitation. We developed an online course for bankers on449elder financial exploitation prevention and created an Elder450Fraud Prevention Summit to train bankers on protecting older451customers. Additionally, we recognize that strong coordination452with law enforcement and adult protective services is453essential. We work with the National Adult Protective Services454Association and convene forums that help banks and455investigators share trends, improve communication, and partner456together to combat elder financial exploitation.457    Last, ABA helps banks explore innovative software solutions458through the ABA Partner Network to strengthen fraud prevention459efforts. These tools help banks detect suspicious activity,460streamline reporting, and provide customers with more461accessible banking experiences.462    Banks across the Nation recognize that protecting older463adults requires a diverse set of strategies, from large464institutions to small community banks. Banks are hosting fraud465prevention workshops, online bank training, financial wellness466seminars, and coordinating outreach with community467organizations.468    While the banking industry is investing significantly in469protecting older people, the scale of today's scams requires a470strategic, coordinated national response. America needs a471nationwide education campaign bringing together federal472agencies, nonprofits, as well as the private sector, to expose473common scam tactics such as impersonation, manufactured474urgency, demands for secrecy, and pressure to act quickly. At475the same time, Congress should consider legislative solutions476that empower banks to delay transactions when they suspect477elder financial exploitation. A clear federal standard with an478appropriate, safe harbor would help financial institutions479further protect older adults.480    In conclusion, the banking industry is committed to481protecting older adults through education, partnerships, and482responsible innovation. With a unified national awareness483campaign and clear authority to pause transactions when484suspecting exploitation, we can better prevent fraud and help485older people preserve the financial security they have worked a486lifetime to build.487    Thank you for the opportunity to testify at today's488hearing. I look forward to your questions.489    The Chairman. Thank you, Sam. Now, I'd like to introduce490Carly Roszkowski, vice president of financial resilience491programming at AARP. Carly leads AARP's efforts to help seniors492build real financial resilience, the kind that holds up when493costs rise, when a scammer calls, or when life throws something494unexpected at you in retirement. AARP reaches older Americans495in every congressional district in this country, and she brings496both the data and the on-the-ground experience to speak to what497seniors are actually facing.498    Thank you for being here. Please begin your testimony.499500         STATEMENT OF CARLY ROSZKOWSKI, VICE PRESIDENT501502              OF FINANCIAL RESILIENCE PROGRAMMING,503504                      AARP, WASHINGTON, DC505506    Ms. Roszkowski. Thank you, Chairman Scott, Ranking Member507Gillibrand, and members of the Committee for inviting me to508testify for this timely and important hearing. My name is Carly509Roszkowski, and I am the vice president of financial resilience510programming at AARP. We deeply appreciate your attention to the511important role financial literacy plays in building a more512secure retirement.513    Financial literacy is foundational to economic security. It514can help Americans save to afford housing and health care,515avoid debt and fraud, make informed retirement decisions, and516remain independent as they age but financial literacy is not517something that can be one and done. It must happen across one's518life, especially as we age, when financial decisions become519more complex and the consequences more severe.520    We live in a new world, where the retirement system has521shifted risk from companies to workers. Individuals, not522companies, must manage saving, investing, and turning those523savings into lifelong income. Folks now have to decide on524investment strategies, decide when and how to claim Social525Security, draw down assets with little or no professional526guidance, and balance that with ever rising living costs and527unknown lifespans. To make things worse, these decisions often528occur during major life transitions, retirement, caregiving,529widowhood, job loss, or health challenges, when people are530least equipped to absorb complexity or recover from mistakes.531    Today, 64 percent of adults worry they won't have enough532money to retire, and nearly one in five non-retires has no533retirement savings at all. Millions of retirees have returned534to work, primarily because they need the income, though purpose535does matter, too. Rising costs, longevity, uncertainty, and536lack of guaranteed income mean this trend will likely continue.537Work has become a bridge to financial security later in life,538but that bridge is strongest when people understand the539financial tradeoffs involved and have access to clear, trusted540information.541    Financial literacy is also a critical defense against542fraud. Older adults are disproportionately targeted by543increasingly sophisticated scams that exploit technology,544urgency, and trust. Fraud is no longer limited to suspicious545phone calls. It involves email, text messages, social media,546and artificial intelligence. Without ongoing, accessible547financial education, even experienced consumers can be548vulnerable.549    That is why financial literacy for older Americans must go550far beyond basic lessons on saving or budgeting. It must551include guidance on managing retirement income, coordinating552Social Security with work and health costs, understanding553decumulation, navigating digital financial tools, and554recognizing and responding to fraud. It must reflect how people555actually experience finances later in life, not just early in556their careers.557    Equally important, financial education must be delivered in558ways that work for older adults. A one-size-fits-all approaches559are not effective. People vary widely in their comfort with560technology. Learning styles and access to information programs561are most effective when they use trusted messengers, plain562language, and real-world examples.563    At AARP, we see that when older adults have access to564relevant, trustworthy financial information, outcomes improve.565People are better able to avoid scams, manage debt, stretch566their savings, and maintain independence longer. Financial567literacy is not just an individual benefit. It reduces public568costs and strengthens families and communities.569    In closing, the realities of longer lives, for some, rising570costs, and a retirement system that places increasing571responsibility on individuals demand a renewed focus on572financial literacy that is practical, ongoing, and actionable.573By investing in trusted education, decision support tools, and574policies that reflect how people work and retire today, we can575help ensure that every American has the knowledge and576confidence to achieve financial security, independence, and577dignity as they age. As Congress considers how to strengthen578financial literacy efforts, we urge you to ensure a lifelong579approach and ensure older adults needs are a priority.580    Thank you for your leadership and commitment to protecting581older Americans. I look forward to your questions.582    The Chairman. Thank you, Carly. Now, I'd like to recognize583Ranking Member Gillibrand to introduce our last witness.584    Senator Gillibrand. Thank you, Mr. Chairman. I want to move585to introduce our next witness, Scott Kahan. Mr. Kahan is a586certified financial planner, educated and lifelong New Yorker.587In 1986, Mr. Kahan founded the Financial Asset Management588Corporation, which operates in Westchester County and New York589City, and serves as president and senior financial planner.590    He provides pro bono financial planning for those in need,591regularly organizes college planning seminars for the592community, and is responsible for the establishment of the593Certificate in Financial Planning program at NYU. Notably, Mr.594Kahan spearheaded the coordination of pro bono financial595planning services for affected 9/11 families and provides596assistance to individuals who continue to cope with ongoing597impacts.598    Mr. Kahan, it's your time to speak.599600            STATEMENT OF SCOTT KAHAN, CFP, PRESIDENT601602          & SENIOR FINANCIAL PLANNER, FINANCIAL ASSET603604          MANAGEMENT CORPORATION, CHAPPAQUA, NEW YORK605606    Mr. Kahan. Chairman Scott, Ranking Member, Gillibrand, and607members of the Committee, thank you for the opportunity to608testify today. My name is Scott Kahan, I'm a certified609financial planner professional, and for more than 40 years, I610have worked directly with individuals and families in New York611to help them build financial security and peace of mind. I612appreciate the Committee's focus on empowering seniors through613financial literacy, particularly during Financial Literacy614Month.615    In both my personal and professional life, I have learned616that access to trustworthy financial planning improves617outcomes. Research consistently shows that individuals who work618with the CFP professional are more likely to have emergency619savings, feel financially secure, and feel confident about620their future. Financial planning isn't a luxury, it's a621lifeline and when it matters most, it needs to come from a CFP622professional.623    Today's seniors face incredibly complex financial624decisions, choosing when to claim Social Security, navigating625Medicare, managing retirement income, and planning for long-626term care, among other challenges. At the same time, seniors627are being targeted by increasingly sophisticated fraud.628Advances in AI have made scams more convincing than ever. It629can be hard to tell what is real.630    When seniors are victimized by fraud, the impact is often631devastating. Unlike younger victims, seniors frequently do not632have time or income to recover. Money lost to fraud is money633they plan to use to support themselves in retirement. The harm634is immediate, and under the current tax law, victims often face635a tax bill on those losses, creating a double hit. For many636seniors, financial fraud is not just a setback, it's permanent.637    We should empower seniors with clear information,638trustworthy guidance, and tools to protect themselves in an639increasingly complex financial landscape. Financial security640supports independence, family stability, and dignity in later641life. Financial literacy and access to competent and ethical642financial planning can make a real difference.643    CFP professionals help individuals cut through complexity,644recognize bad information, and make decisions grounded in their645best interests. We work holistically across budgeting,646investing, insurance, taxes, and retirement planning. Just as647important, we are financial first responders, and often spot648early warning signs of fraud or financial exploitation, and can649help intervene before damage becomes irreversible.650    The broader financial picture in this country makes this651work even more urgent. Many Americans are financially652vulnerable long before fraud enters the picture. A large653portion of households lack even modest emergency savings. For654seniors living on fixed income, a single, unexpected event can655trigger long lasting financial harm. I've seen all this656repeatedly, in my own work, and in my own life, as a newly657minted senior citizen.658    I recently navigated Medicare. I'm a CFP professional with65940 years of experience, and it still challenged me. Imagine660facing that system alone without my background or without the661help of an expert like a CFP professional. I've also lived the662reality of the sandwich generation. My parents retired earlier663than their resources realistically allowed. They eventually ran664out of money. I supported them for much of their retirement,665while raising my own children and saving for my own retirement.666    Their experiences are far from unique. Many families are667quietly carrying the same burden. Too often, people seek help668only when they are already in crisis but crisis is the worst669time to make complex and impactful financial decisions. Just as670we encourage preventative health care, financial planning671should be viewed as preventative care for financial well-being.672    You shouldn't have to be wealthy to benefit from financial673planning. Many CFP professionals provide pro bono financial674planning services. After 9/11, I began offering free financial675planning to victims in New York, an experience that showed me676how powerful timely guidance can be. I support that work today677as a member and former chair of the board of the Foundation for678Financial Planning, an organization that provides funding to679community-based organizations to provide pro bono financial680planning along with financial literacy to underserved681populations like military families, families suffering682financial hardship due to cancer, and seniors in crisis.683    I also know that the CFP board has called upon Congress to684expand access to financial planning through policy tools such685as tax incentives, particularly for middle income Americans.686Financial literacy and access to trusted financial planning687help seniors navigate complexity, avoid fraud, and protect688their futures. I urge the Committee and Congress to continue689advancing policies that expand access to this vital protection.690Thank you.691    The Chairman. I thank each of you for being here. Now,692we'll turn over to questions. We'll start with Senator Husted.693    Senator Husted. Thank you, Chairman Scott and, so I want to694focus on how seniors are being exploited through scams and the695nature of what's happening to many seniors that are being696targeted by criminals, because what I think is especially697sinister about it is they prey on their generosity, their698compassion, and their kindness and, you see that, particularly699with AI-driven technologies, they can impersonate the voice of700a child, a grandchild. They can find new and inventive ways of701scamming our seniors.702    Frankly, I think the criminals that do this, there's a703special place in hell for them, because it's so awful what they704do to these senior citizens who are preyed upon. I've705introduced legislation preventing deepfake scams that would706establish a task force and work with financial institutions on707how we can use and avoid the abuses of AI, how we can use it708for good, how we can use it to protect seniors from the709potential risks.710    Let me start--and I wasn't here for the pronunciation of711your name, but I'm going to go--the way it has it phonetically712spelled here is Mr. Kunguyen. Got it. All right and I want to713start with you. What can banks and other financial institutions714do? What are you doing? What can we do proactively to protect715seniors from these AI-driven scams?716    Mr. Kunjukunju. Sure. There's a couple of things that are717going on, and I want to thank you for your question because718this is something that bankers are dealing with on a regular719basis. It's an everyday situation for looking at this720particular type of issue.721    When it comes to banks, what we're doing is we're making722sure that they are appropriately trained and one of the major723indications of something that is wrong is a change in a724person's behavior. Whether that might be something along the725lines of their demeanor might be changing, maybe they're726stressed out all of a sudden, maybe they're suddenly727disheveled. Something looks off. That's one of the steps.728    A second step is to look at if there's any changes to the729accounts. Is something going on very differently there that730seems to be indicative of some sort of exploitation or fraud? A731third area is, is there some sort of a change having to do with732the transaction? Are they wiring money abroad when they never733wired money anywhere? Those are some of the ways that we are734training banks to identify these issues.735    Separate from that, we're also educating consumers on a736couple of key things. Make sure that you talk to people in your737trusted circle before you make any financial decision. Don't738trust your phone number. If phone numbers can be spoofed,739caller IDs can be spoofed. Don't trust that information. Always740hang up on somebody. Call back if there's some sort of urgency741or concerns about anything that might be popping up, and reach742back out to that person on a known number, or if it's an743organization on the back of a bank card, a legitimate number744along those lines.745    Senator Husted. Great advice for family members. What can746you do to--what kind of recommendations do you have for family747members about if they're concerned about their elderly family748members?749    Mr. Kunjukunju. In this case, I would say families need to750be involved with money decisions. One of the major concerns751about all of this is that, oftentimes, if there's loneliness or752social isolation, that makes an individual much more753vulnerable. If we, as a country, become much more socialized754with the idea of being involved in our family's money, to make755sure that we can check out and see what's going on, having756these discussions, this could be incredibly important and757valuable.758    In addition to that, banks, as well as securities firms,759have implemented trusted contact opportunities. If something is760off or seems awry, a bank or financial institution can reach761out to a trusted contact to get in touch with someone if762something looks off. If families and customers can identify who763that is, that provides a great opportunity to get in touch and764have some of those conversations.765    Senator Husted. Then, quickly, what are some of the766emerging scams? What are some of the things that you are seeing767that people ought to be aware of today?768    Mr. Kunjukunju. I would say the top three scams are;769investment-oriented scams, tech support scams, as well as770romance scams. These are three scams that the FBI identified as771the top scams for losses among older adults. That being said,772tangentially, cryptocurrency-oriented scams have also been773highlighted in about 20 percent of all complaints in 2025774alone.775    Senator Husted. Okay. Great. Thank you, Mr. Chairman.776    The Chairman. Thank you. Senator Gillibrand.777    Senator Gillibrand. I'd like to give it to Senator Kim.778    Senator Kim. Thank you. Yes. Sorry, I just jumped straight779in here, but thank you for letting me be able to jump in. I780didn't catch, you know, the fullness of that answer just there781on the scam side, but I'd love to be able to just keep that782conversation going in terms of just, you know, in terms of what783comes next here, so you know, I'm trying to think through this784in terms of, you know, what to expect going forward.785    A couple of years out, we know how much the technology has786been strengthening it up here and so, we're looking at this,787and living through this moment of immense technological change788and, you know, look, there's a lot of that. That's exciting,789but it's also dramatically increasing the risks from790sophisticated actors that are seeking to take advantage of791this.792    You know, maybe I'll just start with, Ms. Kieffer, to be793able to just go through here. If you could share, I mean, I794know you talked about some of this just more broadly as a795group, but could you share with me more about some of the fast-796growing types of scams targeting older Americans right now, and797how you see them evolve in the last couple of years? What to798expect next? I know that was some of what was talked about to799keep building on it.800    Ms. Kieffer. Thank you for the question, Senator. What801we're seeing today is a merging of scam typologies and,802oftentimes, what might start as a relationship, or not even a803romance, just a friendship, morphs into an investment scam.804Sometimes, it is a trading strategy suggestion. Sometimes, it805might be a pump and dump scheme, an old school pump and dump806turned into a relationship and romance scam.807    In many, many cases, we see recovery operations. Where808after the first scam has taken all that they can from a victim,809we see a follow-on scam implemented by the same perpetrators810that are coming for either additional funds, sometimes811requesting HELOCs, or that they take money from family and812friends. In FINRA's purview, we see a lot of the investment813scam infrastructure, and we see it morphing in those ways that814I just suggested.815    Senator Kim. I'll stick with you here. You know, so I816recently introduced with some of my colleagues, the Senior817Security Act and, you know, we're looking at other ways, you818know, that would create a senior investor task force within the819SEC, strengthen some of these safeguards.820    As we're thinking about these next steps, I mean, do you821have thoughts on what we should be taking away in terms of what822and how federal regulators can continue to coordinate on this823issue, to try to develop the best strategies for seniors to824both be able to protect them from the scams, but also to be825better educated on just the technology and the positive use as826well of that.827    Ms. Kieffer. Well, the positive use of the technology is828one that would be a wise area to study, because we need to get829ahead of the scams. Once the money is out the door, it's very830difficult to recover and so, to the extent that we can be831working public-private partnerships that encourage the use of832these same transformative technologies to prevent the pitches833from ever reaching the individual, we would be well served, and834that would be the beginning of bending the curve but it does835take all of us working together in the different corners that836we serve, using the different jurisdictions that we have to837make a difference.838    Senator Kim. You know, Ms. Roszkowski, I wanted to just839bring you in on this, because, you know, as we've been trying840to do efforts throughout my State of New Jersey, in terms of841educating and being able to inform about fraud prevention,842especially with seniors, I think some of the biggest challenge843we have is not just the quality of information or the approach,844but the capacity to scale when we have just such an enormity of845people were trying to reach. You know, my office, it just feels846like sometimes we're, like, is this even making a difference?847Because of just the sheer number of seniors that we're still848not able to connect in with.849    I guess I just wanted to ask you, just, what are some of850the better strategies and the tactics that we should be851thinking about and to actually be able to scale this type of852education that we know is so important, but how do we do that853in a way that meets the moment?854    Ms. Roszkowski. Thank you for that question, Senator. Fraud855is growing at an alarming pace. We talked about investment856scams, AI-related scams, job scams are up. AARP educates857consumers through our Fraud Watch Network and works with fraud858and scam victims through our free helpline. It's a free859resource, open to all, and it ensures victims are all treated860fairly and works with their families.861    We are very grateful for your support and leadership on862both the GUARD Act, as well as the Tax Relief for Victims of863Crimes, Scams, and Disasters Act. We need to continue864educating, and educating in different channels and in different865spaces. Being in every state, AARP has the ability to be on the866ground in local communities educating on the scams that might867be more local, and we have the power to educate and create868awareness across the Nation for the scams, and getting ahead of869those scams, and continue to educate both in a financial870literacy component, integrating fraud education into when we're871talking about financial implications, but also through all of872our other channels.873    Senator Kim. Yes, thank you for that and I'll yield back,874Chairman.875    The Chairman. Senator Moody.876    Senator Moody. Thank you, Senator Scott, for holding this877hearing. Thank you, Ranking Member Gillibrand. This is an issue878that is very near and dear to my heart. It always has been. I879grew up with a mother who spent her entire professional career880dedicated to making sure low-income seniors were not taken881advantage of and helping them. It was incredible to watch, and882certainly, my perspective on some of this and what we can be883doing to be more fiercely guarded and protective of our884seniors, probably formed at an early age, and carried on885through my adult years.886    As attorney general, because I watched and heard so many887times that our seniors were being taken advantage of, I started888kind of the first ever senior protection team with overlaying889all different agencies, different forms of investigators,890prosecutors, civil attorneys, all with this mindset of what--891how can we be better in Florida?892    Obviously, Florida is a civil state, a senior state. We893have a lot of seniors, and we started really its first of its894kind in the Nation, a cyber fraud unit, statewide initiative,895because we saw so many seniors with the evolution of new896technology, really good technology, that was being manipulated897by criminals to take advantage of seniors. We wanted to educate898them anywhere from the crypto space, to the ATMs, to internet899scams.900    Really, as this team of investigators and prosecutors901became more up to speed, they were able to take and piece902together things that even the Federal Government may not have903taken for threshold reasons. Maybe the dollar amount wasn't a904lot, even though it was a large amount of someone's life905savings, or we would determine cumulative patterns where we906saw, when we put it together, it would have met threshold907amounts.908    After we did that, we had other states coming to us, asking909how they could do the same things. I really, really would love910to see more federal coordination of these state technologically911and legally trained investigators, prosecutors, civil912attorneys, to specifically address fraud on seniors using913technology, really any fraud using technology, and make sure914that they can help and overlay the resources we have in the915Federal Government. We're exploring ways to do that now.916    Specifically, as it relates to Seniors, I've noticed that917when there were--this fraud, for example, more recently, we've918seen the scams go as far as courtrooms set up with actual919judges, and lawyers, and prosecutors and they'll get people in920these Zoom hearings and trick them into thinking they're in921some sort of legal proceeding.922    Of course, then the next step is, they then go to banks or923financial institutions, and try and withdraw money, and send it924by wire, or some other place to satisfy some court debt or925obligation that they've been tricked into believing they owe.926    A lot of the banks are really under a lot of pressure with927the evolution of these new types of scams, to examine how they928can be good faith players when they realize something may be929amiss and certainly, we never, ever want to facilitate the930meritless holding of anyone's assets or money. Certainly, and931that would always be a concern but I'm very interested in what932some states are trying to do with bankers and, and, their933initiatives, many states have passed, I guess, what's called934hold laws. More recently, in Florida, they just passed a935Protection of Specified Adult statute, went into effect in936January 2025.937    I'm just wondering, and I guess I'll direct this question938to Mr. Kunjukunju, what can we learn from states that have939delved into working with banks to protect seniors where they940believe things may be amiss, where they may have fallen for941some of these technologically advanced scams? Have we seen942those types of statutes be effective? Are the majority of943states using this, and how has the Federal Government played944into some of those protective efforts.945    Mr. Kunjukunju. Sure. Thank you for your question. It is946something that we're interested in at the American Bankers947Association, as well. There's about 27 states around the948country that have passed one of these hold and delay laws. A949lot of the origin from this has also been proliferating as a950result of what worked on the security side. In 2018, there was951a rule--two rules, actually, associated with this. One was9522165, the other was FINRA Rule 4512. One has to do with the953hold and delay laws on the security side, and then the second954is related to that having to do with the trusted contact.955    There's been a couple of years where we've seen this956happen, especially on the security side of when it comes to957looking at financial institutions, but we've seen a lot more958progress, given that we've got 27 states around the country959that have passed these laws on the stateside for depository960institutions.961    One of the major things that comes into play with this is,962we have to make sure that we appropriately educate people that963this is possible, because when an older adult may walk into a964branch and has this conversation, and is not under the965impression that they know that they're in the middle of a scam,966but if a banker thinks that they're in the middle of a scam,967and a banker starts to ask them questions, initially, the older968adult may be a little bit put off. Second, if the bank says,969you know, we're going to investigate this for a couple of days,970that's going to lead to some complications. We have to get971ahead of all of that to make sure people understand this is for972their benefit.973    Second, this is sort of making sure that this is something974that is, one, legal and allowed, so the customer doesn't just975leave and say I'm going to go to another bank and then go976through this whole process, because that's what's really key977here.978    To your other point, Senator Moody, what I would say is,979what you've done in Florida has been amazing. I would say you980may also want to look into what's worked in Texas as well. They981started the financial intelligence centers, and that's982financial crimes intelligence centers and that's been something983that has been really beneficial to tackle white collar crimes.984    Senator Moody. Thank you so much.985    The Chairman. Thank you, Senator Moody. Our Ranking Member,986Gillibrand.987    Senator Gillibrand. Thank you, Mr. Chairman. Banking and988financial planning processes have shifted heavily toward989digital platforms, requiring increasing digital literacy skills990to navigate these systems. AARP research shows that most older991adults use financial technology for basic tasks, such as992checking bank accounts, but are not engaged in more993sophisticated tools that facilitate investment, loan994applications, or advanced planning. Sixty-four percent of older995adults report to AARP that they do not feel technology is996designed with them in mind, providing evidence of technology997being viewed as a barrier to financial planning, rather than a998tool.999    Mr. Kahan, have you encountered clients facing difficulties1000with financial technology while planning for the retirement?1001What types of tools or supports would help seniors who are1002having trouble navigating this digital landscape?1003    Mr. Kahan. Thank you for the question. We find that seniors1004often have problems with technology. Many times, as a1005practitioner, professional, CFP professional, people are coming1006into us to help them with retirement planning, we sometimes see1007things that they've done because they read it online. They1008clicked a link or something, and they've got some issues to1009deal with.1010    I mean, from a basic standpoint, we try to educate clients,1011one, you know, most of the scams we find start at the computer1012level from emails where they're clicking something, so we1013encourage them to have virus protection. Understanding how to1014read an email, if it's real or not. People will click on for1015Social Security, or they'll google something for Social1016Security and they're brought to many different sites. Explain1017to clients that if it doesn't end in .gov, G-O-V, it is not1018necessarily a legitimate site, and they may be trying to sell1019you something, so explain to people to hover over an email so1020they understand to see where that's really coming from because1021it's not necessarily coming from where you think it is.1022    Understanding their choices, Social Security, Medicare, and1023then again, looking at how they can identify the fraud that's1024coming in, because it's not just about the retirement planning1025part. It's about really understanding what they're reading,1026which many times is very confusing, because as clients of age,1027they're reading some of the most difficult decisions are tied1028to choosing when to take Social Security, when, you know,1029Medicare, especially if you're still working, what are the1030options for Medicare? When they start to go online, they start1031to really click in. They're their various websites, and some of1032them are fine, and a lot of them are fraudulent.1033    We've had stories from clients where they wind up getting1034scammed for something, and then they're embarrassed to talk1035about it and that is a big problem, because they don't want to1036tell their family members about it. They don't want to tell1037their spouse or partner about it but we'll see it, many times,1038or they'll finally open up about it, or, you know, having a1039family member contact us to say somebody was scammed and what1040can we do about that?1041    It's a matter of educating the clients about how to use the1042technology. Some of them can. Some of them will not be able to1043but letting them know it's okay to bring a family member in or1044a trusted advisor to help them go through to see what's1045legitimate, what's not. Because too often than not, we are1046seeing people scammed at every level. They're getting the phone1047calls. They're getting texts. You know, we tell people,1048sometimes when you answer your phone, don't say your name1049because they voice record it, and now they can use that to1050maybe hack into one of your other accounts, and they don't even1051realize it.1052    It's a matter of trying to educate them. The best way of1053what, where the scams are, and how technology is useful, but1054you have to be able to use it properly.1055    Senator Gillibrand. Right. Ms. Roszkowski, American workers1056and retirees are facing rising inflation and soaring costs.1057They're seeing their costs for groceries to go up, healthcare,1058utilities, housing. Earlier this year, AARP declared retirement1059is on pause. High costs push older Americans back to work. What1060are your members sharing as their top concern in these day-to-1061day issues that they are dealing with for their own retirement?1062    Ms. Roszkowski. Thank you for your question, Ranking1063Member. They are concerned about affording everyday costs.1064They're concerned about groceries. They're concerned about gas.1065They're concerned about health care. They're concerned that1066they will outlive their retirement savings. Our research shows1067not only that seven percent of "un-retirees" are going back1068into the workforce, which is up from the survey we did last1069summer, in 2025, also shows that 28 percent of retired people1070are unfortunately--they think they've retired too early.1071They're concerned they're going to outlive their savings.1072People--some people are living longer, and it's hard to plan1073for.1074    Senator Gillibrand. Yeah.1075    Ms. Roszkowski. We're feeling it, not only with everyday1076costs, but also long-term care, health care and women, 50 and1077older, say that everyday costs is their number one concern.1078    Senator Gillibrand. Ms. Kieffer, with your work at FINRA,1079and the Investor Education Foundation, what are the most common1080challenges older adults face while managing their own1081investments in retirement, and where are the biggest knowledge1082gaps?1083    Ms. Kieffer. The switch from accumulation to decumulation,1084and in some cases, it's not a perfect switch, there's a little1085bit of both happening, but older adults are facing new1086decisions, new products, potentially a new risk profile that1087they've not come back to revisit in some time. Just1088understanding in this uncertain time period of longevity that1089we all grapple with. Coming to terms with these new product1090opportunities, new decisions that need to be made, and1091switching the mindset to a decumulation phase can be very1092difficult. For some, they might choose to work with a financial1093professional in that capacity. Maybe they didn't prior and1094would like to at this time.1095    Whenever anyone is choosing to work with a financial1096professional, if someone comes to them directly, or they're1097going directly to someone, they should always check out the1098background of that professional before they sign on any lines1099or even have followup meetings. They should use FINRA1100BrokerCheck to see if the person registered. Are they1101registered to sell securities? Are they registered for1102investment advice?1103    The SEC's Investment Adviser Public Disclosure Data base1104provides similar information where investors can understand1105what the registration is, the services that are offered, and1106they should ask about fees. For some, navigating these1107challenges is supported by a financial professional, and for1108others, they really need to take the time to educate and learn1109about these products.1110    To the extent that we, as educators, can be out there1111sharing information, not just about scams and frauds, of1112course, but about financial decisionmaking. The Investor1113Insights, articles that FINRA puts out-some I would call 911,1114they're emergent issues, and some I would call 411, they're1115educational resources_where we help people understand what a1116product is, what are the pros and considerations are, so they1117can make those informed financial decisions that are1118appropriate to their life.1119    Senator Gillibrand. Thank you, Mr. Chairman.1120    The Chairman. Thank you, Ranking Member.1121    Ms. Kieffer, studies consistently show that financial1122literacy declines with age, even among people who are1123financially sophisticated earlier in life. Is the financial1124industry doing enough to account for that reality, and how it1125designs products and delivers advice to older customers.1126    Ms. Kieffer. Thank you for the question. While I can't1127comment to what the industry specifically is doing in this1128area, I do know that FINRA members are committed to investor1129protection, and are regularly sharing investor education1130information and working with their clients to understand the1131different products that they're offering and being offered. We1132always stand behind--if you don't understand the product, you1133need to double-think whether that product is for you, and1134that's a premise of all of our investor education.1135    The Chairman. Thanks. Mr. Kunjukunju, say, a senior walks1136into a bank branch and asks to wire $50,000 to someone they met1137online three weeks ago. What specific training do frontline1138bank employees receive today to recognize that situation as1139potential fraud?1140    Mr. Kunjukunju. Yes, thank you so much for that question,1141because that is very much along the lines of things that1142happen. Banks provide the training, but we also do with the1143ABA. One of the things that we do is we focus on those three1144areas; looking at the changes in demeanor, changes in1145transaction, changes in accounts to try to determine what might1146be going on, so in this type of situation, they're going to be1147looking at--looking back at their training to understand, okay,1148what is different here? Is there some sort of change in this1149particular scenario? There is absolutely a change if this1150person has never wired money abroad.1151    Second, it's going to be looking at information about1152whether this person has even used this amount of money ever to1153take out, to transfer, to do anything along those lines and1154then the third piece of this is to really understand why are1155they sending this money.1156    To your point about the question that has to do with the1157nature of this relationship. They'll be asking some specific,1158pointed questions to understand how did this develop? How long1159have you been in relationship with this person? How did you1160meet them? Have you ever met them online? Those are the types1161of things that they'll be asking.1162    Beyond that, if, depending on state law, they might have1163the ability to delay it, investigate further, or they might1164reach out to Adult Protective Services and/or law enforcement1165to get involved and to address the situation, or reach out to a1166trusted contact regarding this concern.1167    The Chairman. Thank you. Ms. Roszkowski, Social Security1168claiming decisions are among the most consequential financial1169choices an older American will ever make, often without1170professional guidance. AARP has done extensive work on this1171issue. What does your data show you about how about how many1172Americans are leaving money on the table by claiming to1173earlier, and what it would take to change that?1174    Ms. Roszkowski. Thank you for the question, Chairman. Most1175of the people I talk to say they're going to retire at 65.1176Americans do not know enough about Social Security and the1177money they will leave on the table if they claim at a certain1178age. Many don't know their full retirement age, nor do they1179know it's approximately 8 percent per year they leave on the1180table if they choose to claim Social Security before age 70.1181    We are supporting bills, such as the Claiming Age Clarity1182Act, so thank you for your support. With that--and this isn't a1183one-size-fits-all decision--that is why it's critical to be1184educating along one's lifespan. Things may change from one year1185to the next, and Social Security is a one-time decision that1186can impact someone's full retirement, which may last 30 years,1187as well as their family. It's continuing to educate, and we1188know that Americans do not know enough about the implications1189of claiming too early as well as the money that they're leaving1190on the table.1191    The Chairman. Thank you. Scott, the fiduciary standard1192requires financial advisers to act in their client's best1193interest, but not every person calling themselves a financial1194advisor is actually held to that standard. How does the senior,1195who has no background in finance, know whether the person1196managing the retirement savings is legally required to put1197their interests first?1198    Mr. Kahan. The first thing we always tell people, seniors,1199they should be looking at a CFP professional. There're1200approximately 107,000 CFP professionals out there today.1201There's I don't know how many hundreds of thousands of so-1202called financial advisors. The CFP professionals have to follow1203a fiduciary standard, which is putting the client's best1204interests first.1205    People should be asking if, you know, when they're meeting1206with somebody, full disclosure. There're so many different1207compensation models out there. It's very confusing. There's1208commission, there's fees and commission. Not to say one is1209better than the other. Everybody has to figure out what works1210for them but full disclosure, there's nothing wrong with asking1211somebody that you're sitting across from, as a planner or as1212advisor, whatever their term is, "What are you making? What are1213your commissions? What are your fees?" Fees are pretty1214apparent. Commissions are not always. It doesn't mean there's1215something wrong with that, but there should be no reason not to1216have full disclosure. That way, they can see or make a decision1217based on compensation of this is what you're doing for me, how1218much is it going to cost me? Because that is really the first1219step in understanding what the costs are.1220    Looking at fiduciary, putting the client's best interest1221first, is the most important thing. Because it's about ethics1222and trusted relationships, because people will share with us1223things that they don't share among each other. We'll have1224spouses come in and have conversations that they've never had1225before, and sometimes they're surprised of what the other one1226is saying. We're there to help mediate sometimes, but in1227reality, is to really figure out what the best interests for1228them and have that trusted relationship.1229    The Chairman. Thank you. Ms. Kieffer, FINRA's BrokerCheck1230tool exists so that any American can look up whether their1231financial advisor has a history of misconduct, but surveys show1232that most seniors have never heard of it. How many older1233Americans are handling their retirement savings to someone with1234a disciplinary record right now simply because nobody told them1235to check?1236    Ms. Kieffer. Thank you for the question, Senator. FINRA is1237committed to sharing the resource, BrokerCheck, and we work1238with a number of partners to make sure that Americans are aware1239of this tool. We have run public awareness campaigns. We work1240with our broker-dealers to make sure that the information is1241out there so that investors know to check.1242    Many years ago, we ran a campaign called, "Before You1243Invest, Ask & Check," that specifically was designed to drive1244traffic and understanding of this opportunity. The vast1245majority of brokers that are registered and inside of1246BrokerCheck do not have a disciplinary record, but it is1247absolutely the information that an investor should know to ask1248the questions they need to ask before working with someone.1249    The Chairman. Thank you. Anything else?1250    Senator Gillibrand. Thank you all for your testimony.1251    The Chairman. I'd like to thank everyone for--does anybody1252have anything else they want to add?1253    [No response.] All right. I'd like to thank everyone for1254being here today and participating. This has been exactly the1255kind of conversation this Committee exists to have. Here's why1256I keep thinking about. The challenges we've talked about today1257are real. The gap between the information many seniors have and1258what they need is very real. The scammers and call centers1259overseas running script designed to steal a lifetime of savings1260from someone's grandparent is very real.1261    The confusion about Medicare, enrollment, windows, and1262Social Security timing decisions that cost people thousands of1263dollars they can never get back is real. We've spent decades1264building programs that are supposed to help seniors, and then1265bury them on government websites that no one can find or1266navigate. We've watched fraud explode while not doing anything1267about it.1268    My colleagues and I here on this Committee have to have1269legislation. Not just have legislation, but make sure Congress1270acts when it's needed. This Committee will keep pushing. We're1271going to keep shining a light on the gaps in financial1272education. We're going to keep demanding that Washington works1273for older Americans, because every senior in this country1274deserves to enjoy the retirement they spent their life1275building, with dignity, with independence, and with the1276knowledge they need to protect it.1277    I also want to remind seniors and families watching, that1278the Senate Aging Committee operates a fraud hotline for anyone1279who believes they may have been targeted or victimized. The1280number is 1-855-303-9470.1281    If any Senators have additional questions for the witnesses1282or statements to be added, their hearing record will be open1283until next Wednesday at 5:00 p.m. I want to thank everybody for1284being here.1285    [Whereupon, at 4:36 p.m., the hearing was adjourned.]1286=======================================================================12871288                                APPENDIX12891290=======================================================================12911292                      Prepared Witness Statements12931294=======================================================================1295[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]12961297=======================================================================12981299                        Questions for the Record13001301=======================================================================13021303                 U.S. Senate Special Committee on Aging13041305   "Empowering Seniors Through Financial Literacy: Tools to Protect1306           Savings, Prevent Fraud, and Promote Independence"13071308                             April 15, 202613091310                        Questions for the Record13111312                             Sam Kunjukunju13131314                   Ranking Member Kirsten Gillibrand13151316    Question:13171318    A recent survey conducted by the National Council on Aging1319(NCOA) and the Women's Institute for a Secure Retirement1320(WISER) found American women reporting significant economic1321stress. Overall, decreasing numbers of women consider1322themselves financially secure, sharing that they are not1323confident about how to plan and save for retirement, with the1324cost of housing and possible cuts to Medicare and Social1325Security as top concerns. Low-income women, who are most at1326risk in their later years, report that they lack confidence in1327planning for retirement. How do we best tackle socialization1328practices that lead to improved financial outcomes for women1329that include access to capital and retirement savings?13301331    Response:13321333    Leading research indicates that improving women's long-term1334financial outcomes begins with building financial capability1335early, with schools and workplaces as two important settings1336for women to develop financial planning skills at a young age.1337Recognizing the importance of starting young, the ABA1338Foundation fills a critical national gap by mobilizing bankers1339to deliver financial education to youth. Through our two1340nationwide, banker-driven campaigns - Teach Children to Save1341and Get Smart About Credit - the Foundation reaches kids,1342teens, and young adults with practical lessons on budgeting1343saving, interest, credit, and other personal finance topics.1344These programs help ensure that young people encounter and1345understand financial concepts long before they face major1346financial decisions.1347    These efforts are especially important given the uneven1348access to financial education across the country. Currently,1349only 11 states have fully implemented a personal finance course1350as a high school graduation requirement. Momentum is building,1351with 19 additional states in progress, but there is still1352significant room for growth. Expanding financial education1353requirements in schools would dramatically improve financial1354knowledge and confidence among young women and set them on a1355path toward stronger long-term financial outcomes and greater1356financial security, including in retirement.13571358                 U.S. Senate Special Committee on Aging13591360   "Empowering Seniors Through Financial Literacy: Tools to Protect1361           Savings, Prevent Fraud, and Promote Independence"13621363                             April 15, 202613641365                        Questions for the Record13661367                            Carly Roszkowski13681369                   Ranking Member Kirsten Gillibrand13701371    Question:13721373    A recent survey conducted by the National Council on Aging1374(NCOA) and the Women's Institute for a Secure Retirement1375(WISER) found American women reporting significant economic1376stress. Overall, decreasing numbers of women consider1377themselves financially secure, sharing that they are not1378confident about how to plan and save for retirement, with the1379cost of housing and possible cuts to Medicare and Social1380Security as top concerns. In addition, surveys point to large1381majorities of women being supportive of a national paid leave1382program. Common sense solutions include my FAMILY Act to1383provide paid family and medical leave, and the Social Security1384Caregiver Credit Act to provide family caregivers with Social1385Security credits. Low-income women, who are most at risk in1386their later years, report that they lack confidence in planning1387for retirement. What type of programs are most effective in1388helping these women feel prepared to engage in financial1389planning? How does unpaid caregiving become an economic penalty1390in retirement for so many women in this country?13911392    Response:13931394    Programs are most effective when they move beyond one-time1395financial education and instead provide practical, ongoing, and1396"just-in-time" support tied to real decisions. As outlined in1397my testimony, financial literacy works best when it is:13981399      
Timely and decision-based - delivered at key life1400moments such as job changes, retirement transitions, or the1401onset of caregiving, when individuals must act on complex1402financial choices.14031404      
Step-by-step and simplified - offering plain-language1405guidance and tools (such as calculators or structured programs1406like AARP's Navigator) that help individuals translate1407information into decisions.14081409      
Continuous, not one-time - recognizing that financial1410needs evolve over time and require ongoing support.14111412      
Paired with decision supports and protections -1413including fraud awareness, trusted contacts, and safeguards1414that help individuals act with confidence.14151416    For low-income women in particular, effective programs must1417also address structural barriers, not just knowledge gaps-such1418as limited access to retirement plans, safe financial products,1419and workplace-based savings opportunities. Without these1420supports, education alone is insufficient to improve outcomes.1421    Unpaid caregiving contributes to economic insecurity in1422retirement because it often leads to interrupted earnings,1423reduced savings, and lower Social Security benefits. Many1424individuals-disproportionately women-leave the workforce early1425or reduce hours due to caregiving responsibilities. These1426interruptions limit lifetime earnings and the ability to1427contribute to retirement accounts, while also reducing Social1428Security benefits, which are based on earnings history.1429Caregivers may also face ongoing financial strain, making it1430more difficult to save or rebuild financial security later. The1431result is a compounding penalty that follows women into1432retirement, increasing their risk of financial insecurity and1433reliance on Social Security as their primary source of income.14341435    Question:14361437    Can you please share how CFPB and FLEC support financial1438resilience resources for olderAmericans?14391440    Response:14411442    The Consumer Financial Protection Bureau (CFPB) and the1443Financial Literacy and Education Commission (FLEC) provide1444coordination, tools, and standards-setting.14451446      
The CFPB provides resources, such as its Managing1447Someone Else's Money guides, which help caregivers understand1448fiduciary responsibilities, recognize fraud, and provide1449suggestions on where to seek assistance. These are especially1450important as more families assist older adults with financial1451decision-making.14521453      
The CFPB and Treasury, through FLEC, coordinate a1454government-wide strategy on financial literacy, helping align1455federal agencies around shared priorities and improving access1456to resources.14571458    Combined, these efforts seek to ensure that financial1459education is not only widely available, but also effective,1460actionable, and accountable.14611462                        Senator Raphael Warnock14631464    Question:14651466    A recent report from the Government Accountability Office1467identified the Federal Trade Commission (FTC), Consumer1468Financial Protection Bureau (CFPB), and the Federal Bureau of1469Investigation (FBI) as the federal agencies best positioned to1470lead a government-wide strategy on anti-scam efforts. However,1471President Trump fired two members of the fivemember FTC in1472March 2025, and this administration has attempted to eliminate1473the CFPB.1474    Cuts to agencies like the FTC, CFPB, and FBI would leave1475older Americans significantly more vulnerable to scams by1476weakening the coordinated, multi-layered response required to1477combat financial fraud. Fraud is a growing and increasingly1478sophisticated threat, with older adults disproportionately1479targeted. Effective prevention requires more than education-it1480depends on enforcement, coordination, and systemic protections1481across government and industry. Federal agencies play a1482critical role in investigating fraud, disrupting criminal1483networks, supporting victims, and promoting protective1484practices like transaction monitoring and trusted contacts.1485    How would cuts to these agencies leave seniors vulnerable1486to scams?14871488    Response:14891490    People work their entire lives to build security for1491themselves and their families. They are working, raising1492children, caring for loved ones, fixing things around the1493house, and waking up every day focused on making ends meet.1494Government oversight and consumer protection help make it1495possible for people to go about their lives without having1496their savings stolen from them. If that role is weakened, more1497responsibility shifts onto individuals at a time when financial1498decisions are becoming more complex and scams more1499sophisticated. Older adults may face heightened risks because1500they are often balancing managing retirement income, healthcare1501costs, and caregiving responsibilities all at once, which can1502be a tremendous challenge. Ensuring that Americans can maintain1503financial security in later life depends on having systems in1504place that deter wrongdoing, promote fair practices, and1505support people when something goes wrong. Protecting people so1506they can continue living the lives they've worked hard to build1507- is what matters most.15081509    Question:15101511    What steps should Congress take to ensure these agencies1512have the capacity to combat scams targeting older adults?15131514    Response:15151516    Congress can strengthen protections for older adults by1517ensuring that federal agencies have the capacity, coordination,1518and tools needed to address fraud effectively. Key steps may1519include:15201521      
Sustaining and strengthening funding and staffing for1522agencies that investigate and respond to fraud at scale.15231524      
Supporting interagency coordination, building on1525existing efforts to align enforcement, data-sharing, and public1526education across government.15271528      
Promoting proven prevention strategies, including:15291530          	Trusted contact frameworks15311532          	Transaction monitoring and alerts15331534          	Employee training programs (such as those used in1535financial institutions)15361537      
Investing in public awareness and victim support,1538recognizing that early intervention can significantly reduce1539financial losses and long-term harm.15401541      
Encouraging outcome-based evaluation, to ensure1542resources are directed toward the most effective anti-scam1543interventions.15441545    Congress can strengthen protections for older adults by1546ensuring that federal anti-fraud efforts are coordinated, well-1547resourced, and focused on stopping scams before losses occur.1548There has been bipartisan recognition that combating scams1549requires a whole-of-government approach, and several1550legislative efforts reflect that understanding:15511552      
S. 3355, the National Strategy for Combatting Scams Act1553would bring together federal agencies, consumer advocates, and1554industry leaders to create a coordinated plan to fight scams.1555By requiring collaboration across more than a dozen federal1556agencies, the bill helps cut through red tape, improve data1557sharing, and speed up enforcement when scams happen. It also1558makes sure the voices of those most affected-like older adults,1559survivors, and people with disabilities-are part of the1560solution and importantly, it prioritizes making resources1561easier to access providing for more effective recovery for1562those who've been targeted.15631564      
S. 2950, the Scam Compound Accountability and1565Mobilization Act (SCAM Act) would bring together federal1566agencies, law enforcement, and international partners to1567develop and implement a comprehensive strategy to counter scam1568compounds.15691570      
S. 4055, the Senior Security Act of 2025 would establish1571a Senior Investor Task Force within the Securities and Exchange1572Commission (SEC). The task force will coordinate across SEC1573divisions to strengthen safeguards and stop financial predators1574from scamming seniors out of their savings.15751576      
H.R. 7215, the Stop SCAMS Act would create a long-1577overdue, unified strategy to combat these crimes by tasking the1578Federal Bureau of Investigation (FBI) with organizing a1579coordinated, government-wide effort to prevent and respond to1580scams. It would also align inter-agency actions, definitions,1581and data to improve the efficiency and effectiveness of scam-1582fighting efforts.15831584      
S.2544, the GUARD Act would provide state and local law1585enforcement with federal grants to hire and train staff and1586secure specialized software and other tools to improve their1587capacity to conduct fraud investigations. This will ensure law1588enforcement has the tools they need to lock up the criminals1589who victimize older Americans.15901591      
H.R. 6426, the Stop Scams Against Seniors Act, would1592empower state, local, and federal law enforcement agencies to1593better combat the growing epidemic of financial fraud targeting1594older Americans by authorizing federal grants to support Elder1595Justice Task Forces nationwide, improving coordination and1596investigative capacity to pursue and prosecute criminals who1597exploit older adults.15981599    Taken together, these legislative efforts underscore the1600importance of sustained capacity, coordination, and prevention.1601By investing in these approaches, Congress can help ensure that1602older Americans are better protected from scams while1603preserving their ability to live the lives they have worked1604hard to build.16051606                 U.S. Senate Special Committee on Aging16071608   "Empowering Seniors Through Financial Literacy: Tools to Protect1609           Savings, Prevent Fraud, and Promote Independence"16101611                             April 15, 202616121613                        Questions for the Record16141615                              Scott Kahan16161617                   Ranking Member Kirsten Gillibrand16181619    Question:16201621    Twenty-three percent of people age fifty and older care for1622either an adult or a child with a disability. For this1623population, the financial and physical well-being of the people1624they care for can be a great source of anxiety and stress. This1625stress is especially real for parents who must plan for the day1626their disabled child will need to live without them. What1627considerations do parents of disabled children, who play a huge1628role ensuring their loved ones have their basic needs met, have1629when they plan for when they outlive their children?16301631    Response:16321633    This is an important issue that requires careful planning1634by families. There are two primary considerations. First, who1635will be responsible for a person with a disability? Many times,1636parents rely on a family member, often a sibling, to care for a1637disabled sibling when the parents are gone. This puts an undue1638burden on that potential caretaker. They may be prepared for1639this responsibility, or they may not want this obligation.1640Depending on the severity of the person's disability, a group1641home may be a consideration. Finding the right place is often1642difficult, especially if the family lacks the financial1643resources to afford the flexibility to choose one.1644    Second, how will parents financially protect the disabled1645child? The average family does not have the resources to1646provide for the long-term care needed. Parents also may want to1647leave an inheritance split equally among all their children. In1648cases like this, parents are sometimes forced to leave less or1649nothing to other children, which can cause resentment among1650family members. Proper financial planning is essential early on1651to create a long-term plan that may include trusts, insurance,1652and government benefits. Some parents can purchase life1653insurance to create funds upon their death. However, this can1654be expensive and assumes that the parents are insurable. Others1655may create Special Needs Trusts. For many families, ABLE1656(Achieving a Better Life Experience) accounts are an important1657and often underutilized vehicle. Established under federal law,1658ABLE accounts allow individuals with disabilities to save money1659in a tax-advantaged account without losing eligibility for1660federal benefit programs. They can be used for qualified1661disability expenses, including housing, education,1662transportation, and health care. For families who may not have1663sufficient resources for a Special Needs Trust, an ABLE account1664can be an accessible and meaningful first step toward1665protecting a disabled loved one's financial future.16661667    Question:16681669    In April 2024, the Biden Administration advanced the1670Retirement Security Rule to enhance worker retirement savings'1671interests by adopting a broader definition of an investment1672advice fiduciary under the Employee Retirement Income Security1673Act (ERISA). In March 2026, the Trump Administration abandoned1674the rule, after declining to appeal a court ruling that vacated1675the rule. As a certified financial planner, can you explain why1676it's important to you as a professional to provide financial1677advice that is wholly in your client's best interest? Further,1678why is the requirement to provide trusted investment advice1679free from overcharges a cornerstone of the CFP Board of1680Standards, and do you have any recommendations in this area for1681your broader industry?16821683    Response:16841685    With Americans increasingly responsible for their own1686retirement savings, the need for trustworthy, professional1687guidance has never been greater. CFP Board research1688overwhelmingly shows that when Americans work with a financial1689professional for advice, they desire and expect that person to1690act in the client's best interests. This is an obligation that1691more than 109,000 CFPr professionals already commit to CFP1692Board to uphold, yet hundreds of thousands of other financial1693professionals do not, while calling themselves wealth managers,1694financial advisors, or financial planners. This creates real1695confusion - and real consequences - for the public.1696    Conflicts of interest are present in every business model.1697They most commonly arise from the receipt of compensation from1698a client, but there are other kinds. When providing financial1699advice to a client, a CFPr professional must avoid conflicts or1700make full disclosure of all material conflicts of interest with1701the client that could affect the professional relationship,1702obtain the client's informed consent, and manage the conflict1703in the client's best interests. This is important because the1704consequences of conflicted advice are substantial. Investors1705may only experience small differences in fees each year. Over1706time, however, these small differences can lead to enormous1707erosion of account balances and significantly impact financial1708security.1709    My recommendation for the industry is to adopt a legal1710fiduciary standard for all financial advice. This would include1711an obligation to fully disclose and manage all conflicts of1712interest, such as compensation. If a firm or financial1713professional earns commissions, the client should be made aware1714of them. If they pay fees, the client should see the fees on a1715statement from the custodian. Full disclosure and managing1716conflicts should be a requirement so that a client can decide1717who to work with. This would help restore consumer confidence.17181719    Question:17201721    More than half a million Georgians have left the Affordable1722Care Act (ACA) Marketplace since January 2025, following the1723expiration of enhanced premium tax credits. Across the country,1724nearly five million ACA enrollees between the ages of 50 and 641725are facing increased monthly premiums for health insurance.1726    Based on your experience as a financial planner, how does a1727drastic increase in monthly health insurance premiums affect1728early retirees' ability to cover health care costs?17291730    Response:17311732    For early retirees, one of the hardest decisions is how to1733choose and pay for their medical coverage. If they are within173418 months of age 65, they are eligible for COBRA. With COBRA,1735though, many people do not realize they are now paying the full1736cost of insurance, not just the employee share they paid while1737working. The other concern is their spouse's age. If the spouse1738is younger, they have a longer gap to cover before they are1739eligible for Medicare. Also, people need to buy a supplemental1740plan to cover many of the costs that Medicare does not cover.1741    People who planned to retire early may now need to delay1742retirement until age 65. Often, though, retiring early is not1743the employee's choice. They are forced out of the workforce by1744a layoff, a health event, or a caregiving obligation and then1745face paying a much larger amount for medical coverage. This1746will mean drawing from retirement savings sooner than expected.1747They may also need to sacrifice other expenses, such as travel,1748home repairs, necessary medications, etc. If they choose to1749take on the risk and forgo insurance to cut costs, they risk a1750single serious illness wiping out their retirement savings1751quickly.17521753    Question:17541755    How can Congress improve early retirees' access to1756affordable health insurance through the Marketplace?17571758    Response:17591760    One of the most significant financial planning challenges1761facing Americans today is the cost of healthcare coverage in1762the years between leaving work and becoming eligible for1763Medicare at age 65. Whether that gap is covered through COBRA,1764a marketplace plan, or a spouse's employer coverage, the1765financial burden can be substantial and, for many, prohibitive.1766In my over 40 years of helping clients, I have seen how1767healthcare costs during this gap can be far higher than1768anticipated and destabilize a sound financial plan. From a1769financial planning perspective, clients need predictability.1770Policy solutions that reduce uncertainty, improve1771affordability, and expand coverage options for Americans in the177260-64 age range would meaningfully strengthen retirement1773security across the income spectrum.17741775=======================================================================17761777                       Statements for the Record17781779=======================================================================1780[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]17811782                            [all]