I will be 65 July 2018. 66 is my full retirement age. I intend to keep working full time. What happens if I apply for Jan 2018 (the year I will turn 65> what are penalties?
If you start drawing benefits effective with January 2018 and continue working, you'll lose $1 of your benefits for every $2 that you earn in excess of $17,040 next year.
In addition, your monthly benefit rate will at least initially be 10% lower than your full retirement age rate because you claimed benefits 18 months early. Before filing, you should strongly consider using the maximization software available on this website to determine your best strategy.