Both.
CCC 1821 We can therefore hope in the glory of heaven promised by God to those who love him and do his will. In every circumstance, each one of us should hope, with the grace of God, to persevere "to the end"and to obtain the joy of heaven, as God’s eternal reward for the good works accomplished with the grace of Christ. In hope, the Church prays for “all men to be saved.” She longs to be united with Christ, her Bridegroom, in the glory of heaven:
Hope, O my soul, hope. You know neither the day nor the hour. Watch carefully, for everything passes quickly, even though your impatience makes doubtful what is certain, and turns a very short time into a long one. Dream that the more you struggle, the more you prove the love that you bear your God, and the more you will rejoice one day with your Beloved, in a happiness and rapture that can never end.
CCC 1023 Those who die in God’s grace and friendship and are perfectly purified live for ever with Christ. They are like God for ever, for they “see him as he is,” face to face:
By virtue of our apostolic authority, we define the following: According to the general disposition of God, the souls of all the saints . . . and other faithful who died after receiving Christ’s holy Baptism (provided they were not in need of purification when they died, . . . or, if they then did need or will need some purification, when they have been purified after death, . . .) already before they take up their bodies again and before the general judgment - and this since the Ascension of our Lord and Savior Jesus Christ into heaven - have been, are and will be in heaven, in the heavenly Kingdom and celestial paradise with Christ, joined to the company of the holy angels. Since the Passion and death of our Lord Jesus Christ, these souls have seen and do see the divine essence with an intuitive vision, and even face to face, without the mediation of any creature.
CCC 1024 This perfect life with the Most Holy Trinity - this communion of life and love with the Trinity, with the Virgin Mary, the angels and all the blessed - is called “heaven.” Heaven is the ultimate end and fulfillment of the deepest human longings, the state of supreme, definitive happiness.
CCC 1025 To live in heaven is “to be with Christ.” The elect live “in Christ,” but they retain, or rather find, their true identity, their own name.
For life is to be with Christ; where Christ is, there is life, there is the kingdom.