Like everything else in life, "it depends".
If you have a stock (1,600) or 1,776cc engine, don't drive fast and give yourself plenty of room to slow and stop, then drum brakes all around might be fine. Hell, that's all they offered on VW beetles from the early 1950's until 1974 or so, and everyone seemed to get by OK.
However! Drum brakes will fade with a lot of use and really don't stop as well as disk brakes, especially on the front - they simply take more effort for the same stopping power - disks are always adjusted correctly so they don't pull to one side or the other, and they're a bit cheaper to service.
And remember........When VW upgraded to the 1,600 engine from the 1500 (40 hp) engine, they also upgraded the brakes to front disks for a good reason - the bigger engines were simply too much for the wimpy drum brakes to handle.
So, yes......you should probably think of upgrading to front disks, for safety, if for no other reason.