Most high end photography today is retouched. The amount of retouching I do really depends on the type of photograph. For example an actor’s headshot will get a retouch which just does a basic clean-up. An actor needs to look like their headshot when they come to the casting.
Now for family and senior portraits the retouching can be a little bit heavier. Some extra polish on the skin, removal of scars and softening of lines.
Of course the most retouching can be done for boudoir photos. These photos are about fantasy and glamour. So super smooth skin and even sometimes some digital plastic surgery all in line with creating that final look.
Great retouching makes the difference between a snapshot and a photograph. Today retouching is done in Photoshop. In the past it was done in the dark room. Hollywood had teams of retouchers that would hand alter negatives of the stars to create the famous glamour photos.