Hi there
When we got Hector as a pup he was (and his litter brother had the same problem) what is know as bilaterally chryptorchid (neither testicle had dropped). He now has one. Consequently I did a good deal of research into the subject.
There are varying views as to the cancer risk of retained testicles- older research suggests that the increase in sertoli tumour due to chrytorchidism is around 12x I have clipped a wikipedia article for you which explains chryptorchidism.
I was also made aware of a more recent veterinary study that suggests the risk is not actually as high. Unfortunately I have not been able to access this on the internet as it in specialist veterinary publications.
http://en.wikipedia.org/wiki/Cryptorchidism#DogsThis will give you context but no certainty on your decision.
It also depends on whether you / the vet can feel the retained testicle. If you can feel it easily that you may (only the vet can advise here) be able to leave the operation on the basis that if problems occur in this testicle you will be able to see/feel them and operate before it becomes too serious. However if the testicle is not visible under the skin, i.e. it may be in the abdomen than this is more difficult.
Finances allowing I would canvas the opinion of a few vets - some may give you 5 minutes on the telephone to get second opinion on how they assess the risk of retained testicles.
The cost of the operation could be £300 if the testicle is in an awkward position.
However I am sure the vet would have let you know if the operation was required urgently so I would let him settle in a bit before making any big decisions.