I do not know of a predefined function in XSLT to accomplish this. But you can always write your own code. The solution below does not use a function, but you could easily rewrite it as a function.
The idea for the calculation is taken from here.
There are other (shorter) ways to to this, for a solution specific to XSLT 2.0 see Mads Hansen's answer here, for example. You'd have to slightly adapt the stylesheet you find there, though, since it outputs days.
Input
<root>
<birth>1964-10-10</birth>
</root>
Stylesheet
<?xml version="1.0"?>
<xsl:stylesheet version="2.0" xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
<xsl:output method="xml" />
<xsl:variable name="Birthday" select="//birth[1]"/>
<xsl:variable name="Age">
<xsl:choose>
<xsl:when test="month-from-date(current-date()) > month-from-date($Birthday) or month-from-date(current-date()) = month-from-date($Birthday) and day-from-date(current-date()) >= day-from-date($Birthday)">
<xsl:value-of select="year-from-date(current-date()) - year-from-date($Birthday)" />
</xsl:when>
<xsl:otherwise>
<xsl:value-of select="year-from-date(current-date()) - year-from-date($Birthday) - 1" />
</xsl:otherwise>
</xsl:choose>
</xsl:variable>
<xsl:template match="/root">
<result>
<xsl:value-of select="$Age"/>
</result>
</xsl:template>
</xsl:stylesheet>
Output
<?xml version="1.0" encoding="UTF-8"?><result>49</result>