It depends on how much other people care about your data, and how much physical control you have over the devices. If you’re in “nation states would like to have it” territory, you should never have unencrypted data at rest, or on the wire. If you’re a regular home user and all your computer stuff is inside your own house, you’re probably fine. In between, there’s a lot of possibilities. Encryption is cheap.
It depends on how much other people care about your data, and how much physical control you have over the devices. If you’re in “nation states would like to have it” territory, you should never have unencrypted data at rest, or on the wire. If you’re a regular home user and all your computer stuff is inside your own house, you’re probably fine. In between, there’s a lot of possibilities. Encryption is cheap.