We recommend updating Wordpress to the latest version every time you are prompted to do so on your dashboard. Upgrading Wordpress is generally recommended as updates often are done to protect site owners from new security threats. But before you go ahead, it's strongly recommended that you backup your database first in case any errors occur. There is also a slight chance that an update could render some of your plugins or themes unusable so get in touch with the creator or developer of your Wordpress theme prior to updating and confirm that the Wordpress update will have no adverse effects on the theme.
If you are hosting your site through Premium Hosting, you may refer to the following guide on how to back up your Premium-hosted site: How to backup your website with Premium Hosting
Once you have downloaded and saved your site's back up, you can now login to your Wordpress site. On the Wordpress Dashboard, you will see the notice to update:
You can also choose to click on the Updates link on the left sidebar to access all updates for your site:
You can then click on the "Update" button on the Wordpress Updates page.
You will see the Welcome Page to the new Wordpress version with information about the update after completing the update: