FinancialFacelift: Analyzing Leah's Decision on Mortgage Payment Using Retirement Savings

Understanding Leah's Financial Situation

At 67, Leah has reached a pivotal moment in her financial journey. She will receive defined benefit pensions from both her current and former employers, totaling $48,000 a year. Additionally, this amount is indexed to inflation, providing her with a stable source of income.

The Role of Retirement Savings

Leah's retirement savings, particularly her RRSP, represent a critical asset. The choice to utilize these savings to pay off her mortgage must be weighed against her ongoing living expenses and future financial needs.

Considerations for Leah's Decision

• Income from pensions versus mortgage obligations
• Long-term financial security and peace of mind
• Impact of OAS benefits on total income stream

In making this decision, Leah must analyze how her actions might affect her financial flexibility moving forward.

Tax Implications

Furthermore, withdrawing funds from her RRSP could have significant tax implications. Leah should consult with a financial advisor to ensure she navigates this effectively.

Final Thoughts on Leah's Mortgage Payment Dilemma

The choice Leah makes will shape her financial landscape as she enters retirement. By assessing both the benefits and risks, Leah can better position herself for a secure financial future while enjoying her hard-earned retirement.