Should I go back into a junior IBD role for comp?

For context, I started my career in investment banking and spent six years working my way up to Associate. I eventually left because I wanted a better work-life balance and moved into Corporate Development & Strategy at a large financial company, where I’m now a VP.

I’ve been here for three years. I am now 32 years old. My current comp is $120,000 base with a fixed 20% bonus.

The lifestyle is probably as good as it gets in finance. I generally work 9am–5pm, and when there’s no live project I can often arrive around 10am or leave at 3–4pm. I also work from home two days a week.

After years in banking, that flexibility has been incredible. I have time to go to the gym, see friends outside finance, date, pursue my own hobbies and generally have a life outside work.

Overall, I love the job. The problem is compensation progression.

I’ve effectively been told there won’t be a meaningful pay rise unless I’m promoted to Director. That could happen in another 1–2 years, which isn’t far away, but even then the package would only increase to around $140,000 base plus a 30% bonus.

Initially, I was fine with that. It’s still a six-figure salary and the work-life balance is exceptional. But over the past few years I’ve really started to feel the impact of inflation. Rent has risen significantly, buying a decent home in the city can now mean spending millions, and even a normal dinner date can easily cost $100–200.

Recently, an opportunity has come up for me to return to investment banking as a junior Associate.

The base would be around $130,000, so only a modest increase initially, but with significantly greater bonus potential and, more importantly, a much higher long-term earnings ceiling if I eventually make VP and beyond.. Plus I'd also have go back in as a junior associate so technically a demotion.

So I’m really unsure what to do.

Do I give up an unusually good lifestyle for a career path with materially higher earnings potential? Or stay in a role I genuinely enjoy, accept slower compensation growth, and recognise that I may never find another Corp Dev/Strategy job with this level of flexibility again?

Do you guys think I should be happy with my current role and that the pay is good already, am I being greedy for wanting more pay? Or do you agree for a 32 year old my pay and financial situtation is bad and I should aim for more.