I'm going to lean toward staying where you are at. You said you like your co-worker and I haven't seen you indicate if you like either job much better than the other. Jobs at 64 are extremely hard to come by. Government jobs are usually pretty hard to be removed from. If that is true with yours? Pensions are gold, even small ones! Your past company was such a mess can you really be sure the future will be bright. If not, what will your prospects be for another job? Government probably won't take you back after you hit full retirement age.
What is a good reason for leaving a job? I quote:
"You are looking for better career prospects, professional growth and work opportunities. You want a change in career direction. You are looking for new challenges at work. You were made redundant or the company closed down".
Can you check any of the above reasons? You need a positive reason to switch, not a negative to go!
There are lots of aids for coping with a bad boss. Google them! I had several and stayed the course as they eventually went their way.
In summary, make your decision without factoring in one toxic boss. She is the least important part of your considerations. Finding a way to cope, maybe she leaves, etc...
I say I lean towards staying, but I can't answer the questions I'm asking, I can only read into what you wrote. I was forced to make a career move at age 53 in IT, which was flourishing, and it still was the most stressful thing I ever did because not many employers can look past the age issue. Worked out for me, but I never stopped looking over my shoulder.
Make a bullet list of pluses, minuses, how likely can something go wrong to sabotage either choice and what options will you have to move on. Assign values. Think it through and you will make the right choice.
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