I think it depends on what you are planning to apply for...are you applying for a Masters program, or a PhD/PsyD?
The doctoral programs typically seem to like GRE scores of 1300+, though obviously there are exceptions. However, it is generally safe to say that 1300 is a great score to aim for, and most institutions would definitely give a good look to the applicant.
However, Masters programs probably don't need GRE scores of 1300+, in fact, quite a few that I was looking at only required a combined score of 1000. That isn't to say that they actually expect higher (and I'm sure the average score of applicants is quite a bit higher...), but you may not be cut off from consideration if you have a score just over 1000 (whereas you probably would in a doctoral program).
Your score is pretty good, and I think if you are just applying for Masters programs, you probably don't need to re-take it right now (though you may want to if the time ever comes in which you want to apply to doctoral programs).