If you retire now you will not be eligible for SS benefits for several years. I think you need to take a careful, realistic look at the cost of fulltiming. I hate to throw cold water on your plans , but if you can't afford to stay in the house you now own you are on pretty shaky financial ground.
I speak from experience. I had to retire from long haul trucking at age 62 because of Glaucoma. I too had a small 401k and SS. but at age 70 I am still working and saving as much as possible to live on when I can no longer work.
You need to remember you may live another 20 to 25 years or more and your pension or SS payments will be worth very little in 20 years. Just compare prices today with those of 20 years ago.
I hope after taking stock of your finances you are able to follow either your plan A,B,or C. But be open to plan D,E or F.
I know at age 58 I never thought I would still be working part time at age 70.
