Or if you would like the longer explanation which should start with, minimally, chucking 35 bucks or so for a manual and reading the process of servicing the lower unit.
Drain the lower unit of oil then remove the prop and thrust hub.
Unbolt and the bearing carrier and pull it (you will need a puller of some description - I use threaded rods and a harmonic balance puller - cheaper than the "Merc tool".
Remove, at least, the reverse gear and the propshaft (otherwise you won't have the clearance you need to get the pinion off).
Although, if you do have a busted pinion I would want to get a look at "all the guts".
Get the special socket to place on the top of the driveshaft (only sure way not to chew things up - and I have tried numerous methods).
Using the special socket to hold the driveshaft steady (sell for about 30 or 40 bucks and fit on a ratchet), work a boxed wrench over the nut at the bottom of the pinion and undo it.
Replace any parts that look suspect and since you have everything out, re-doing the carrier seals is worthwhile. Again, if the pinion is really toasted you may have chewed up one or both of the gears. For many years they gears had to be replaced as a set, I don't know on this particular model whether or not you could get away with "only" replacing a pinion, rear or forward gear alone - failing to replace at least the pinion and forward, on some models, results in chewing up the new gear plus the old one because they are "not matched" (a decent manual will normally tell you the requirements).
Also, since you were prying at the water pump base you may want to have a good look at the seals and bearing "under" the water pump base that support/seal the drive shaft.
Reverse the process and torque the pinion to spec (sorry, don't have the torque for that model year). It's achieved by using a torque wrench to put the correct torque on the drive shaft using the (special socket).
Reinstall everything else, fill it with gear oil and cross your fingers that you did everything correct and don't have a leak somewhere.
At least if you have to tear it down "again" because of a missed step, everything moves easier and you have some experience taking it apart/re-assembling...