Rodgers believes Carragher could continue his career but he understands why the 35-year-old is calling it a day and thinks the former England international will be "a joy to watch" in his new role.
"He's moving on to the media next season and he'll demonstrate his intelligence," said the Reds boss.
"His depth of knowledge of football will make him a joy to watch.
"I think supporters will see he's going to give an amazing insight as he steps right off being top of the bill and goes in front of the TV screens.
"For me he could play on but he's always wanted to go out at the top and there's no doubt he's doing that.