Thanks for your reply Steven.
When you say am I prepared to take risk, I presume you mean with regard to the DC pension plan investment which has replaced our DB plan (which I guess is as secure as anything nowadays in that it is a Church scheme and so backed by the resources of the Church).
My (perhaps naive?) view on that is that since the major part of my occupational pension is "fixed" (in that the amount earned to date by my DB contributions, i.e. 36-odd years, is essentially guaranteed), then the relatively small amount which will go into the DC pot over the next 3-odd years, i.e. my employer's contribution and my own contribution, could be invested for maximum return (higher risk). The projected pension figure at retirement date which Zurich has given me comes to €1300 p.a. I would be prepared to lose some of that in the hope of higher gains through a higher risk investment strategy with Zurich.
My (and my wife's) employment is secure. We have a sufficient emergency fund in hand.
As regards the kid's inheritance, our plan, should we decide to go abroad on retirement, would be to sell our investment property and divide the proceeds between them. You're right, they need it now - not in umpteen years when we both kick the bucket.
From your last paragraph it seems as though you would be thinking that the best option is to forget about saving with a financial institution and instead put everything into AVCs, thereby gaining the 41% tax relief and lump sum bonuses, and avoiding DIRT on our savings' interest.