When it comes to lathe age, mine is coming up on 79. I replaced the original spindle bearing, which I still have, because there was uncleanable old grease in it that made it "bumpy" as it turned.. And on that replacement hangs a story, one not entirely to Logan's credit. But we can save that until the measurement has been further explained.
We really need to know where the base of the indicator holder was, and what the tip was on, before the 5 (or 8) thou can be evaluated properly.
Eh, that's what I get for dealing with supper before finishing the post.... OP posted before I hit the "save" button.