Drupal upgrade

What version of Drupal core are you all using? We currently use Drupal 7.2 and our contractor suggested an upgrade to 7.16 (in progress today). After some research it looks like this version was released back in 2012 and the most recent is 7.31. We're not developers so any insight would be helpful. Thanks!

I just ran across this information and thought I would pass it on:

Issue Identified in Drupal 7.29 Security Upgrade

An issue with potential data loss when upgrading to Drupal 7.29 has been identified and posted on Drupal.org. For more information, please see "Regression: Files or images attached to taxonomy terms (and other entities?) are lost when the term is edited and saved.”
We urge customers to review the issue as posted, assess their Drupal configuration for related vulnerabilities, and test appropriately when upgrading to Drupal 7.29 to avoid unintended consequences.