Should be fine. The only reason to do precisely 1/8" is to fit commonly available UST pickups... but it'll probably work just as well in a wider slot anyway.
A different option is to add some nut compensation. It reduces the amount of saddle compensation you need, and generally improves intonation beyond what can be achieved with saddle-only compensation. There are some pre-made compensated nuts available that hook over the end of the fretboard so you don't have to permanently modify it (nut compensation shortens the nut-to-1st-fret distance)
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