The Liverpool captain endured a difficult end to the season for Liverpool but insists the Three Lions can surprise their critics at the World Cup in Brazil this summer
Gerrard endured a disappointing end to the season at club level, as Liverpool just missed out on the Premier League title to Manchester City.
Yet the 33-year-old says he has every belief that they can win the trophy in Brazil, despite being drawn in a tough group alongside Italy, Uruguay and Costa Rica.
"I think (lowering expectations) can help but there's no harm in dreaming," Gerrard told Sky Sports.
"Us players dream as well, you always say to yourself 'what if', 'what if it does happen' and you prove all the doubters wrong and you go on to have a successful World Cup?
"So there's no harm in dreaming but the reality is that there are a lot of top teams going to this World Cup. It's a very difficult competition but there's excitement and belief in the squad that we can do well.
"It's for real now. It's not far away and the preparations start (Monday) when we get over to Portugal and do our first training session. There's certainly a lot of excitement and belief in the squad."
Gerrard's long-term midfield partner and vice-captain Frank Lampard added that he is buoyed by the youth in England's squad, with the likes of Luke Shaw, Raheem Sterling and Ross Barkley all selected by manager Roy Hodgson.
"It's a good squad with a mixture of youth and experience," Lampard said.
"I think we were crying out a few years ago for these young boys to come through and excite us and I think they've done that.
"As an experienced, older member of the squad I do enjoy having that around, it does feel good. Hopefully they play without fear and go and play well."