For most calendars, keeping 12 months of history is a sensible default. For compliance-sensitive calendars, check your data retention policy first.
Keeping the current and previous year's events means you can look back at what happened "this time last year" — useful for recurring annual events, performance reviews, and year-on-year comparisons. Events older than 12 months are rarely referenced in most working contexts.
Tip: When in doubt, export the calendar as a backup first. You can then set a more aggressive cut-off date, knowing that the exported ICS file preserves the historical record if you ever need it.