Abstract: By using SPSS to make principal component analysis of two indicators of economic development and demographic composition, that is, four influencing factors of “reverse mortgage” (economic conditions, the total pension facilities, education and aging level) of 20 cities in our country, it is proposed that “reverse mortgage” pilot mode should be implemented first in Beijing and Shanghai Also, cluster analysis is used to divide the 20 cities into five categories, and “reverse mortgage” pilot cities sequential mode is given The results show that “reverse mortgage” has obvious geographical differences in demand, and traditional ideas and pension infrastructure have significant influence on “reverse mortgage”

Key words: aging, reverse mortgage, principal component analysis, cluster analysis