Hi Priya,

To set a termination date, you should make sure your cutoff instruction for the record type is an event type. That way you'll be able to define events that need to be marked with a date to determine cutoff eligibility, so in your case you would have an event called "Termination," or something similar.

For the retention half of the equation, you will need to create a retention schedule that keeps your record for 5 years, then goes into whatever final disposition action you choose. 

These two elements used in conjunction should give you the retention policy you are looking for.