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In the past few years, a large number of laborers in China have withdrawn from the market, resulting in a slowing down in the growth rate of the current economy as well as the total economic volume. In this context, the total scale of pension income distribution will therefore enter a state of slow growth even if the level of pension income distribution has improved. In the long run, a “contradictory” phenomenon will inevitably appear between the slow growth of pension income distribution and the rapid growth of pension demand, that is, the level of pension income distribution will not be able to meet pension needs. Accordingly, this paper aims to identify the main factors that affect the level of pension income in China, and to discuss how to optimize the level of pension income. Results show that the growth rate of the dependency ratio of the elderly has been in negative numbers for a long time, which indicates a shortage of available labor in China, and on the other hand, it reflects the stabilization and deepening of China’s aging. What is more, there is a causal relationship between the growth rate of residents’ disposable income and the growth rate of the dependency ratio of the elderly and the growth rate of China’s pension fund expenditure. In addition, the impact of local fiscal revenue on pension fund expenditure is not significant, so there is no explanatory significance for this work.