Monitor the documents that got deleted or are near deletion as part of a site retention policy?

If we define this retention policy on one site:-

So what does this policy exactly means? it means that items modified 5 years ago will be permanently deleted even if they are not deleted? or it only affect deleted items?

Second question, is there a way for the admin to monitor the items that are near to be permanently deleted due to a retention policy? or the items that were already permanently deleted?

Thanks