Gerrard told Liverpoolfc.tv: "Other teams are going to strengthen and become better sides, so it is important we do the same.
"There is a lot of money in the league - teams and squads will become stronger in the summer. It's important we do not fall away, we want to stay up there with the best.
"To keep doing well in the league and Europe we need to strengthen the squad, there is no doubt about that."
Gerrard is more concerned with Benitez's transfer market activity, saying: "I don't know much about Rafa's transfer plans. He doesn't call me in and tell me names.
"But he does assure me and the other players that if anyone becomes available who would strengthen the side, then he will go out and buy them. It's important Rafa gets the right backing above him as well.
"Obviously I have to be careful that I don't send expectations through the roof again, but for me I am desperate for it (a title challenge). I believe in this team and this manager, and believe we can make it happen.
"We need help and new players, and the manager needs help from the board to make these signings happen and make us stronger. I do expect us to be involved next season."