At my current job, in a small business, I manage department [a], while my colleague manages department [b]; we both report directly to the owner, and are hierarchical equals (if you will). Both she and I are ‘refugees’ from our previous careers, in that we both held more senior positions in bigger and more prestigious organisations, but downsized in terms of position, prestige and responsibility (and salary) for mostly personal reasons (hers was cancer, mine mental health). So, we are both hugely overqualified for the positions we hold (in fact, both she and I could do each other’s jobs with ease - we both used to manage people who did both our current jobs) - we’re also very good at what we do (as you might imagine), and the owner is quite candid about how lucky he is to have us. You might say that we have both downsized our ambitions, in a pragmatic and self-preservatory vein.
For me, it has mostly worked. I am literally earning half what I was a couple of years ago, but I am more than twice as happy and well-adjusted. I have no problem leaving work at 5pm with a job half-finished, or not-finished-as-well-I-could-finish-it-if-I-tried-harder, I don’t agonise about work on the weekends, and don’t sweat it when things go badly (which I really used to do). On the whole, my work-life balance is way better than it used to be, and I am palpably happier than I was (as verified by people who knew me then and know me now).
For her, not so much. She still works on the weekends (I am cc-d in to emails that she sends late on Sunday nights - there are lots), and regularly has temper tantrums and mini-breakdowns because things aren’t perfect. She has carried her old ‘senior management’ mentality on to her new middle-management role, and is applying the same metrics and standards from the former to the latter, with predictably catastrophic results. In short, she is just as stressed as she was pre-diagnosis, and to cap it all she’s being paid less (and, I suspect, feels some sense of humiliation in terms of being powerless with regard to operational concerns which previously would have been considered beneath her).
(and lest it appear that my laissez-faire attitude is contributing to her stress - that’s not how it works in our context; she only needs me to do 20% of my job in order to be able to do 100% of hers and vice-versa)
I don’t say this with any spirit of smugness; I like my colleague a lot and we get on very well (and we work well together) - I regularly [jokingly] tell her off for taking things too seriously, but behind this banter I’m actually concerned about her. She’s got the worst possible end of the deal - all the stress of a high-end job with none of the reward - and this could in quite real terms kill her.
The moral of this convoluted story - and relevance to the OP - is that downsizing your career aspirations can work, but only if you do it right.