Liverpool must beat Roma in the second leg of their semi-final on Wednesday, and hold a commanding 5-2 lead over their Italian counterparts.
Provided they can avoid a 3-0 defeat, or worse, in the deciding leg in Italy, Jurgen Klopp's men will face Real in Ukraine in the showpiece, and both of the former England midfielders believe that the Reds have the weapons in their armoury to down Cristiano Ronaldo and Co.
Speaking on BT Sport after Real's clash with Bayern, Gerrard said: "It's an incredible achievement [three straight finals], but it was desperate at times for Real. They were all over place at back. Bayern will be full of regret. They were dominant over two legs and the far better team for me.
"Real should be worried, because this Madrid team have major problems at full back and crosses, Trent [Alexander-Arnold] and [Andrew] Robertson are two of the best crossers in Premier League.
"On what you’ve seen over two legs, you think Liverpool can really hurt this Real team."
Lampard, meanwhile, believes Bayern were the better team in the Spanish capital, and feels Real are weaker than they have been at any other point under Zinedine Zidane's management.
"Bayern were fantastic. We’ve all been there and there is no worse feeling in football when you know you deserve the result," he added.
"This Real team is not same as the last few years, despite great success this year they are at a lower level. Can they rely on luck one more time?"
He concluded: "Liverpool scored the most goals in the group stages and have carried on in knockouts. If they keep the momentum they can win this."