Health should come before wealth. With good health, hard work and diligence, wealth will follow. On the other hand, poor health will erode your wealth.

So if your health is poor now, best to take a break and nurse yourself back to health. 55 is not exactly a young age, neither is it old nowadays. You can still go back into the work force after 1 to 2 yrs break, but may not be at your old job.

The other thing is with only $1.2m, it will not last long. A simple calculation using a yearly expense of $50k, moderate inflation of 3.5%, and assuming you are able generate a return of also 3.5% on your $1.2m, the $1.2m will at most last you close to 20 yrs. Meaning in 20 yrs when you are 75 yrs old, it will all be depleted, leaving you just your flat. Your savings will go down faster if you have sudden big medical expense.

A safe amount to retire and to last 30 yrs (till 85 yrs old) is $3.5m. No bull. Many people are not aware, and end up having to go back to work at 65, or older... There are simple retirement planning calculators on the Internet. Try them out.