Yes. You're hitting the time limit, not the miles limit. It's 7 years/70k miles.

search.php?keywords=1996+850+timing+bel ... mit=Search

Time is relevant...but with only 32k on the belt i would leave it for 2-3 more years...if that is my car.

If you do decide to replace it keep in mind that this would be an unusual timing belt service: you would only change the belt, because you were concerned the rubber is deteriorating. A "normal" timing belt service would always replace the accompanying roller pulleys, and sometimes also the...

I would also run that 2-3 more years, but I am a risk taker.

I ran my 99 to 137k, 14 years

I’m running my New Beetle belt 15 years