Never Never never click a link in an e-mail whether it looks legit or not.

Go to the site itself and log in.

I got that same one and sent it in to paypal.
They have a dedicated spoof email address: spoof@paypal.com

Got this back.

Hello Alan Schuyler,
Thanks for forwarding that suspicious-looking email. You're right - it
was a phishing attempt, and we're working on stopping the fraud.

Identity thieves try to trick you into revealing your password or other
personal information through phishing emails and fake websites. To learn
more about online safety, click "Security Center" on any PayPal webpage.
Every email counts. When you forward suspicious-looking emails to
spoof@paypal.com, you help keep yourself and others safe from identity
theft.