steering rod rubbing on hull. how do i fix it

[alloffroad]

I just got this boat, 1988 bayliner capri BR, and the steering rod at the motor is rubbing a hole in the pocker it goes into on the port side of the boat. As it goes into the pocket it rubs on the edge and has worn through to the wood of the transom. How do i adjust this, if I can? I have sealed the wood with epoxy but I know this is only a temporary fix.