Data retention policy
A data retention policy defines how long an organization stores different categories of data and outlines when and how that data should be deleted or anonymized.
What is a data retention policy?
A data retention policy establishes rules for how long data is kept before it is securely deleted or anonymized. It ensures that personal and business data are stored only for as long as necessary to meet legal, regulatory, or operational requirements.
The policy typically categorizes data by type—such as employee, customer, or financial data—and assigns retention periods to each. This supports compliance with regulations like the GDPR, CPRA, and ISO/IEC 27701, which require organizations to justify and document data storage practices.
Why data retention policies matter
Data retention policies are critical for privacy, compliance, and operational efficiency. They help organizations reduce data storage costs, manage risk, and ensure outdated information is not kept longer than necessary.
By enforcing retention limits, organizations reduce exposure to data breaches and unauthorized access while demonstrating accountability under data protection laws. Retention policies also align with the principle of data minimization, ensuring that personal data is processed only for its intended purpose and timeframe.
A well-implemented policy improves governance, supports legal discovery processes, and builds trust with customers and regulators.
How data retention policies are used in practice
- Defining retention periods for personal, financial, and operational data
- Automating data deletion or anonymization after a defined period
- Aligning storage practices with privacy, security, and industry regulations
- Supporting data minimization and privacy by design principles
- Reducing risk exposure by limiting stored data volume
- Integrating retention rules into data governance and record management systems
Related laws & standards
- EU General Data Protection Regulation (GDPR)
- California Privacy Rights Act (CPRA)
- ISO/IEC 27701 (Privacy Information Management)
How OneTrust helps with data retention policies
OneTrust enables organizations to create and enforce automated data retention policies that align with legal requirements and internal governance standards. The platform helps identify over-retained data, manage deletion workflows, and maintain audit-ready documentation.
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FAQs about data retention policies
A data retention policy sets timeframes for how long data is stored, while data minimization limits the amount of data collected and processed in the first place.
Responsibility is typically shared between legal, privacy, IT, and compliance teams. The Data Protection Officer (DPO) ensures the policy aligns with privacy regulations and internal standards.
The GDPR requires organizations to retain personal data only as long as necessary for its intended purpose. A retention policy provides the structure to meet this obligation and demonstrate accountability.
