Better method for archiving users ; Unique Retention Policy or Litigation Hold?

[OneTechBeyond]

I am trying to identify the best option for creating a standardized policy for keeping all my term'd employee OneDrive and Exchange data on an indefinite hold, without using up an M365 license.

I have read recommendations regarding creating dedicated Retention Policies, and other postings where the recommendation is to put the user's account on a Litigation Hold.

Which tends to be the more standardized method for archiving and holding terminated user data?

[#2]

@OneTechBeyond 

Retention Policies are now the Microsoft default best practice for this sort of thing over Holds and eDiscovery, so I would recommend these first.

However, I do personally tend to prefer more definitive action on terminated users, where the mailbox is converted to shared and delegate access granted as required, As for OneDrive data, this is more challenging if you are using AD sync, but when deleting a cloud only user object you may convert the mailbox to shared as part of the process and also grant a delegate 30 days access to the OneDrive before it is deleted.