This is a tenured position? If yes, hold on to it. Tenured positions at universities are HORRIFICALLY DIFFICULT to obtain.
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I am 54 years old with somewhere between 6-12 years left to work.
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There is serious age discrimination out there in the job market. Sure, you'll get a quick contract out there, but as you get older, the times between contracts will get longer and longer and you'll get ridiculous reasons for why they won't hire you, or you get ghosted more often. You also will not get benefits on lots of these contracts so you'll be paying through the nose for individual policies and you get no paid time off either.
Don't you DARE quit your tenured job. Especially now with a recession right around the corner.
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If I stay at the university, am I risking my sanity, my health, and my well-being?
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Well, if you quit, you'll lose your sanity and health by dealing with a huge uptick in stress of unemployment and lack of stability in your work. Your well-being won't improve if you quit.