A soft retreat goes to the nearest friendly territory (would be good for nades), and a full retreat is back to base.
I honestly wish with my full heart, that CoH3 wont have any kind of soft-retreat mechanics tbh. I mean no FHQs and no soft retreats (by that I mean not the ones that involves micro), so you either dodge by micro\prediction or enjoy full trip back to the base.
Because in CoH2 FHQ and soft-retreats just ruined everything up to 2v2+ and even 2v2 to some extend, while didnt affect 1v1. But out-side of 1v1 it just brought braindead blob retreats to FHQ and back to the fight in mere seconds.
Since any kind on retreat points which allows you brirng your forces back to the fight faster are pretty much destroying one of the fundamental coh concepts, being that you dont have to wipe squads in order to win the fight, but to knock the enemy away to the base giving yourself oportunity window and time.