I believe the default now is that nothing is saved, not even for a week. However, each user can configure a setting that does cause Twitch to save the stream for about a week, before it's deleted.
In order to fully archive a stream "permanently", a user needs to view each archived recording individually and select an option from that page to save it forever.
In order to fully archive a stream "permanently", a user needs to view each archived recording individually and select an option from that page to save it forever.