Based on the information gathered, it appears that there isn't one single age demographic that universally holds the most expendable income. Different sources point to slightly different age groups depending on how "expendable income" and "demographic" are defined. However, we can synthesize some key points:

• Peak Earning Years: The age bracket of 45-54 is often cited as the peak earning years for U.S. households. This suggests they likely have a significant amount of income from which to derive expendable funds.
• Wealth Accumulation: The Baby Boomer generation (those born roughly between 1946 and 1964) is frequently mentioned as holding a large portion of the disposable income and household wealth in the U.S. They are also noted to be spending more than other generations overall.
• Women Over 50: Some research indicates that women over the age of 50 have the most disposable income.

It's important to distinguish between disposable income (income after taxes) and discretionary income (income after taxes and necessities).

Regarding what these demographics primarily spend their money on:

• Baby Boomers: With more discretionary income due to being empty nesters or retired, they spend on themselves, their children, vacations, and education. They also have significant spending in categories like home improvement, remodeling, furniture, and landscaping.
• High-income households in general (which can span across age demographics but often correlates with the older, more established groups mentioned above) tend to spend more on items like coffee and tea, vitamins and supplements, alcohol, and potentially cannabis/CBD. They also show a higher willingness to purchase more products, including premium versions. Travel and jewelry are also mentioned as splurge items for some in this group.
• Generally, across most age groups, housing is the largest expenditure.

Therefore, while the 45-54 age group likely has the highest income, the Baby Boomer generation and potentially women over 50 control a significant portion of the wealth and disposable income and spend across a wide range of categories, including leisure, home improvements, and travel.

It's also worth noting that spending habits and discretionary spending intentions can vary across generations. For example, in early 2025, older generations (Boomers and Gen X) were more likely to expect to spend less on travel, dining out, and entertainment compared to younger generations (Millennials and Gen Z).

To give a more precise answer about the most expendable income, we would ideally need a consistent definition and recent data that directly compares the discretionary income across all age demographics. Based on the available information, it's reasonable to conclude that individuals in the older, established age groups (45-54 and Baby Boomers) likely have the most capacity for expendable income, which they allocate to a variety of goods and services beyond necessities.