Character Limit

I'm considering moving my campaign management here, but I'm concerned about the 3 character limit for players. Most of my players won't pay for an upgrade (and I'm not going to limit participation by budget), so they'll be using the free edition. (Of course, a few of my players play in multiple campaigns, so if this works, several of us will upgrade to get more space.)

Players in my campaign play 2 characters each (though generally one at a time), which sounds like it isn't a problem. But I'm concerned that over time, we'll wind up hitting the cap as chars die and are replaced. I noticed a place where one person mentioned 'retiring' a character. Does this allow them to use that slot for a new char? If not, some people won't have space even if they have 10 chars. (D&D is not a forgiving place. :) )

Basically, my players will only really ever need 2, maybe 3 chars active at a time, but I don't want to lose all the history about the old char when it dies.
You're absolutely right! I should have mentioned that here. When you retire a character, it no longer counts against your limit! A free user could technically have 10 characters as long as only 3 are active.
Another thing I should have mentioned, once a character is retired, it cannot be un-retired for 1 month (and then only if you are under the character limit for your account type)! This may seem arbitrary, but we don't want people cycling through retired characters in order to get around the character limits.