The former Manchester United defender feels Gerrard can go one of two ways upon retirement and should not settle for a 'ceremonial position.'
And the best examples to follow in that regard, according to the 39-year-old, are ex-Manchester United midfielder Giggs and former Arsenal man Vieira.
"Steven Gerrard and Thierry Henry are at that stage where they have to make good decisions," Neville wrote in his regular column for the Daily Telegraph.
"Patrick Vieira is a fine example of someone who is learning under the radar, with academy and youth team players, to improve his knowledge. Equally I have to decide whether to stick my head above the parapet, with coaching, or stay in the media. Four years into it, I feel better qualified to make that choice.
"A ceremonial role would not be right for Steven Gerrard. It would never satisfy him. Ryan Giggs at Man Utd and Edwin van der Sar at Ajax have taken jobs with a real purpose.
"If a ceremonial position were the only offer on the table Gerrard might be wise to follow Jamie Carragher’s path and break free for a while. Create his own existence. He’s smart enough to get it right."