Hmm, the subject is impossibly vague no matter how you look at it, because no one can really know for sure... that also makes it so interesting.
I kinda think people go where they believe they will go after they die. i.e. Christians would go to Heaven, people who believe in reincarnation would return to this world in another lifeform, atheists would probably go nowhere. But that's just as vague a possibility as any other.
Personally, my beliefs are quite compicated and not quite comparable to any of the commonly known religions' views.
I believe that humans are just temporary homes for souls to live in for a short time before the body decays and dies, after which the soul will move to a new body. A soul will reincarnate endlessly, until it gets tired or old enough or something like that. Then it moves to Tuonela, an underworld realm of the dead in the Finnish mythology, and rests there. Usually forever, though they can revisit the human world in a spirit form, and there are rare occasional souls that have "returned from the dead" after resting their chosen time.
The reincarnation is not a punishment like it is in Hinduism, though, it just happens. Of course going to Tuonela is a relief when that time comes because the soul is so tired by that time already, but the reincarnation itself is not a sign of a bad life.
There's only a handful of people in the whole world who share my religious views. Sometimes I feel it's a shame because I can't share my spiritual experiences with likeminded folks, but usually I'm okay with it.