Indeed. This means that this data is still needed for 7 years. But it also means it can (and should) be deleted once it is no longer required to be retained.
For example, if the data is no longer needed, it should then be thoroughly deleted as soon as the legal retention period is over. Whether it is 7 years + 1 day, or 10 years + 1 day, or 99 years + 1 day.
@Em0nM4stodon @Loucovey This is where security challenges and records management challenges overlap on the Venn diagram.
But data minimization is a good principle for addressing both.