If I upgrade my OS to 10.8, will I still be able to run iWork?

I have an iMac from 2008; my wife just got a new iMac to replace her G-5(!).  I am still running OS 10.5.8; she is now on 10.8.  It seems to make sense for us to both be on the same OS (doesn't it?), but I don't want to have to spend tons of cash to do so.  If I upgrade my OS from 10.5.8 to 10.6 to 10.8, will I still be able to run iWork (specifically Pages and Numbers), or will I have to upgrade the software, too?  I also see that OS 10.8 needs 2G of memory, which is all I have.  So upgrading memory would be another expense.  I'm trying to figure out if I'm better off upgrading this machine,or selling a kidney and getting a new iMac.  Any thoughts?

iWork will run fine. 2GB is the minimum. Although it will not have optimal performance, I say it should be OK. I have Lion installed on my MacBook with 2GB and it runs fine, Mountain Lion is not much worse.

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