Well done. I had a feeling he wasn't going to talk about the pension. He's avoiding that talk because it makes it very real as to what he's done and continues to do.
You handled the conversation perfectly and you are absolutely right...he needs to live on his own and figure things out. You can't rescue him from his current mess.
He's got a lot of work ahead of him and only he can do it. I think he was hoping you would allow him to move back home and hopefully he could sweep some of the stuff under the rug and pretend it never happened. I'm glad you didn't jump on that proposal.
Grace, you are doing very, very well. Continue as you have been. He's slowly but surely pulling the curtains back to see the light of day.
Sit quietly, the answers will reveal themselves when you least expect them to. The past is gone, the present is a gift and you need to focus on today, allow the future to reveal itself when it is ready.