A report released by the Chinese Academy of Social Sciences (CASS) on   states that China’s pension funds will fall to zero in 2035 after peaking in 2027 at 6.99 trillion yuan ($1.04 trillion). Most provincial-level governments fund their own pensions by taxing workers’ wages. Last year the central government created a separate pool of money to redistribute funds from regions with pension surpluses to those with shortfalls, but even with subsidies, the pension system is projected to begin running an annual deficit in 2028.