In SharePoint Document library retention policies we can set the retention policy for Content type and library document and folders. By applying the retention policies to document library items we can make them delete or make them records with the existing options.
To set the retention policies for library items or folder we have to navigate library settings page and click on Information management policy settings link in Permissions and Management section.
In Information Management Policy Settings page click on Change Source link in Source of retention for this library.
Select Library and Folders option in “Source of Reflection” section. We’ll see a popup with warning message by selecting that option saying that “when library and folder based integration schedules will select, all the Content types will be ignored”, Click on Ok.
We can new section with “Library Based Retention schedule” with description text box. Click on Add a retention stage link to add new retention.
We can see new dialog box specifying the Event and action details. Select the Event and Action for retention stage and click on Ok to save the settings. We can add many retention stages for the document library. Click on Ok in Library Based Retention Schedule page to save the settings.