Prepare for a worry-free future

I think it depends mostly on the interest rate. If you can get a better rate on a safe investment than you are paying on the mortgage, you should be able withdraw enough to make you mortgage payment and still have profits for other purposes. The tax consequences are minimal because the mortgage interest is deductible.

If you pay off your mortgage would you still have some money left over? I would pay off your mortgage, you are throwing away money. Annuities are bad investments. they have high mangement fees and costs. Pay off your mortgage and then invest in safer investment vehicle, treasuries (i-bond) or broad based mutual fund (after the market recovers a little.