Roy Hodgson's side were knocked out at the group stage in Brazil after defeats to Italy and Uruguay and a draw against Costa Rica.
But Neville is optimistic that the experience will stand young players, such as Liverpool forward Daniel Sturridge and Arsenal midfielder Jack Wilshere, in good stead for Euro 2016 in France.
"We were all disappointed to go out after two games – we were devastated, really," he told Sky Sports News.
"As I stand here now, I still feel disappointment. Until the tournament finishes I don't think we'll be able to fully move on because you are still thinking 'well, what could have been?' That’s a dangerous place to be. You've got to always think forward.
"The good thing about it was there are a lot of young players who were part of that squad and we've got to make sure that those players develop in the next two years and we are more competitive in the tournament in two years' time; there’s no doubt about that.
"We've got to make sure that we perform in tournaments. We accept that we've fallen below what everyone expects this time, including ourselves, and next time we've got to do better.
"That's to say that I think the plusses are those players in two years' time will be further forward – there are a lot of younger ones there – [Jordan] Henderson, Wilshere, Sturridge, [Danny] Welbeck, [Phil] Jones, [Chris] Smalling, [Luke] Shaw – a lot of young lads who basically will be around for another three to five tournaments after experiencing their first one.
"From that point of view you've got to think that hopefully the benefit of that will come in two years' time."