We are not living in hell! Hell is an actual place of existence. Please refer to the gurbani quotes below:
Maru M.5 (ang 1003)
EAMkwir auqpwqI ]
The One Universal Creator Lord created the creation.
kIAw idnsu sB rwqI ]
He made all the days and the nights.
...
qRY gux kIAw pswrw ]
He formed the expanse of the entire universe from the three gunas, the three qualities.
nrk surg Avqwrw ]
People are incarnated in heaven and in hell.
In this shabad, it describes hell (ang 92):
ibKm Gor pMiQ cwlxw pRwxI riv sis qh n pRvysM ]
The path you must walk is treacherous and terrifying, O mortal; neither the sun nor the moon shine there.
This next shabad describes how it comes after sinful living (ang 385)
mnmuKu jy smJweIAY BI auJiV jwey ]
Even if the self-willed manmukh is instructed, he stills goes into the wilderness.
ibnu hir nwm n CUtsI mir nrk smwey ]5]
Without the Lord's Name, he shall not be emancipated; he shall die, and sink into hell. ||5||
This shabad reminds us that we are born in hell or heaven:
swsqR byd pwp puMn vIcwr ]
The Shaastras and the Vedas speak of sin and virtue;
nrik surig iPir iPir Aauqwr ]2]
they say that mortals are reincarnated into heaven and hell, over and over again. ||2||